Tesla suffers its first UK sales decline since 2013

Tesla’s revenue in the UK has fallen for the first time in more than a decade as Elon Musk’s electric car company struggles with a slowdown in demand.

According to the latest reports from Tesla’s UK arm on Companies House, sales fell from £2.84 billion to £2.47 billion in the 12 months to December 2023.

The decline in sales brings to a halt the company’s recent momentum in the UK, where it has enjoyed consistent sales growth since 2013.

This comes amid a general decline in global demand for electric cars, as high prices and so-called range anxiety deter buyers.

Mr Musk’s company is also facing questions about its aging car offering as Chinese brands try to flood the market, and global sales also fell in the first six months of 2023.

The latest accounts from Tesla’s UK division, which covers both cars and energy, show that car sales fell from £2.5bn to under £2bn in 2023.

This drop was partly offset by a rebound in the energy division, which saw sales rise from £167.3m to £336.3m, driven by increased demand for its Powerwall home batteries.

Despite falling sales, Tesla’s Model Y remained the most popular electric vehicle in the UK in 2023, according to the Society of Motor Manufacturers and Traders (SMMT).

A total of 49,571 new Teslas were registered in the UK in 2023, down from 54,622 the year before, according to SMMT data.

Matthias Schmidt, the founder of Schmidt Automotive Research, said Tesla’s falling revenue in the UK could be due to recent price cuts as the car maker tries to maintain its growth rate.

He added that the market is only becoming more competitive as traditional rivals aim to meet the strict EV targets set by the government.

Mr Schmidt said: “The UK market environment for Tesla is also much more competitive in 2024, as other manufacturers looking to meet the 2024 ZEV mandate targets are introducing a wider range of battery electric vehicle products and also offering discounts to avoid meeting regulatory targets miss.” ”

The latest findings come after Mr Musk last week revealed Tesla’s plans for a robotaxi service called Cybercab.

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