Tesla recorded a modest recovery in its UK sales last month, registering 7,700 new vehicles in June—a 3.7% increase compared to the same period last year, according to figures released by the Society of Motor Manufacturers and Traders (SMMT). Despite the improvement, the electric vehicle (EV) manufacturer remains slightly behind its 2024 pace, with 22,700 vehicles registered in the first half of 2025—a 1.3% year-on-year decline.
The June rebound follows a sluggish start to the year for Tesla, which has cited production delays at its Berlin gigafactory—particularly for the updated Model Y—and buyer reluctance amid anticipation of new model releases as factors hampering performance.
Earlier this week, Tesla reported a 13% drop in global sales for the second quarter, attributing the slide to various headwinds, including rising competition from Chinese EV makers like BYD, a more crowded electric vehicle market, and CEO Elon Musk’s controversial political involvement.
Despite its challenges, Tesla continues to lead the UK’s battery electric vehicle (BEV) segment, holding a 10% share of the market so far in 2025, according to data from industry analysts New AutoMotive. BMW and Volkswagen trail closely, each with around 8%.
The broader UK electric vehicle market showed strong growth in June. BEV registrations surged by 39% year-on-year to reach 47,300 units, accounting for nearly a quarter (24.8%) of the 193,000 new cars registered during the month. The overall new car market also grew by 6.7%.
However, the BEV share remains below the government’s 28% target for 2025 under its zero-emission vehicle (ZEV) mandate. The mandate requires automakers to meet escalating targets for ZEV sales or face financial penalties, with the benchmark rising to 33% next year.
SMMT Chief Executive Mike Hawes welcomed the market growth but warned that it is being artificially sustained by heavy manufacturer discounting and dealer incentives.
“Another month of growth for the new car market, and especially for electric vehicles, is encouraging,” Hawes said. “But the current trajectory depends on industry-backed offers. Without stronger government support—such as VAT cuts and changes to luxury car tax rules—the ZEV mandate targets are at risk.”
Hawes also called for an end to the VAT discrepancy between home and public EV charging, which he said continues to hinder widespread adoption.
Meanwhile, internal combustion engine vehicles continued to decline. Petrol models made up 46% of new car registrations in June, down from 51% a year earlier, while diesel dropped below 6%. Plug-in and standard hybrids together now account for nearly 24% of the market—highlighting the UK’s ongoing, if uneven, transition toward electrified transport.
