After months of sales struggles due to reputational issues linked to CEO Elon Musk’s association with the Trump administration, as well as fierce competition from Chinese EV manufacturers, Tesla has been forced to offer discounts of up to 40% to car leasing companies to boost sales in the UK, according to a new report released today.
The report from the Society of Motor Manufacturers and Traders (SMMT) stated that Tesla’s July sales in the UK dropped about 60% to 987 units.
During this period, new car registrations in the region decreased by about 5% year-over-year in July, with battery electric vehicles now expected to make up 23.8% of new registrations in 2025, slightly higher than SMMT’s previous forecast of 23.5%.
The latest report follows months of losses for the EV giant, following a decline in demand worldwide, excluding China.
In North America, the company has experienced a decline in domestic sales, helped by the repeal of U.S. federal regulatory credit schemes, which had led to a $1.11 billion drop in projected revenue.
In Tesla’s latest earnings report, Musk warned that the automaker will face “a few rough quarters” due to increased tariff costs.
Following the release of today’s report, Tesla shares dropped almost 2%.
By CEO NA Editorial Staff
