Tesla’s UK Sales Plunge 45% Amid Challenges for Elon Musk

In May, the sales of new Tesla vehicles in the UK dropped over 45% compared to the same month last year, highlighting the difficulties facing Elon Musk as he intensifies his focus on the electric vehicle sector.

This marks the fifth consecutive month of declining sales for Tesla in the UK, Germany, and Italy, according to data from New Automotive, a market research firm. Despite a 28% increase in overall electric vehicle sales across the industry in the UK, the trend for Tesla points downward.

Last month, Tesla sold 1,758 vehicles in Britain, a decrease from 3,244 units sold in May 2022, as reported by New Automotive. Nevertheless, Tesla continues to hold the title of the top-selling battery electric vehicle maker in the UK for the year to date.

Elon Musk, who recently departed the White House after advocating for reductions in government inefficiencies, faces criticism as his company struggles with both declining sales and stock prices.

Protests urging customers to boycott Tesla have emerged, driven by Musk’s alignment with far-right politics in Europe and his attempts to trim the US federal workforce as well as humanitarian funding.

A group of investors has recently reached out to Tesla’s board, requesting that Musk dedicate at least 40 hours a week to the company, citing concerns over the “plummeting global reputation” of Tesla.

Sales in China and Europe have come under pressure from the influx of affordably priced electric vehicles from Chinese manufacturers. Tesla’s sales in Germany are reported to have fallen more than one-third in May, according to the German road traffic agency KBA, even as overall electric car sales surged by 45%.

KBA noted that Tesla sold 1,210 cars in Germany last month, marking a 36% decline year-on-year. In contrast, sales for the Chinese competitor BYD skyrocketed, increasing ninefold to 1,857 units.

A spokesperson for Tesla expressed optimism that the upcoming launch of the new version of the Model Y—previously Europe’s best-selling car in 2023—would help increase sales in June as deliveries in the UK commence.

In Norway, the new Model Y has already started to bolster sales, with deliveries scheduled to begin this month across several other European markets.