Tesla's sales in the UK plummeted by 60% in July, while BYD surged by 4 times

Tesla's sales in the UK market have suffered a severe setback.

According to the latest data from the Society of Motor Manufacturers and Traders (SMMT), the American electric vehicle manufacturer saw its registrations in the UK plummet by 60% in July, falling from 2,462 units in the same period last year to 987 units.

In stark contrast, Chinese competitor BYD has performed strongly in the UK market, with registrations in July soaring over fourfold year-on-year to 3,184 units, far surpassing Tesla to become the leader for the month.

Tesla's troubles in Europe extend well beyond the UK market. According to the Financial Times, the company has faced setbacks in major European markets this year, primarily due to consumer backlash against Musk's political stance and increasing competitive pressure from rivals like BYD.

Official industry data shows that Tesla's registrations in Sweden fell by 86% in July to 163 units, in France by 27% to 1,307 units, and in Belgium by 58% to 460 units.

These declines are particularly striking as they occur just after Tesla launched an upgraded version of its flagship Model Y SUV. New product launches typically stimulate sales growth, but the data indicates that market response has not met expectations.

In contrast, BYD is expanding rapidly in the European market. The company is accelerating its presence in Europe, and its product line and pricing strategy pose a substantial threat to traditional electric vehicle leaders.

Overall Weakness in the UK Market

Tesla's sales decline also reflects the overall weakness of the UK automotive market. Uncertainty regarding the eligibility criteria for the UK government's new electric vehicle subsidy policy has led to delays in purchasing decisions.

On Tuesday, the UK government announced that four Citroën electric vehicle models would qualify for the £650 million subsidy scheme, allowing consumers to save £1,500 when purchasing these vehicles. However, Citroën's new car registrations still fell by 41% in July.

Other major automotive brands are also facing challenges: Fiat's new car registrations dropped by 43% in July, Honda by 46%, BMW by 18%, and Toyota by 23%. These figures indicate that the UK automotive market is undergoing a broader structural adjustment period.

Musk's Controversies and Corporate Governance

The challenges Tesla faces stem not only from market competition but also from controversies surrounding its CEO, Musk. Reports indicate that consumer backlash against Musk's political stance has begun to impact Tesla's sales performance.

Meanwhile, Tesla's board disclosed in a document on Monday that it has approved a new compensation plan for Musk, including a stock award of 96 million shares, aimed at "incentivizing and focusing" the billionaire CEO to revitalize the struggling automaker.

Musk has been engaged in a seven-year legal battle with shareholders over a $56 billion compensation plan. After Delaware Judge Kathaleen McCormick ruled that the compensation plan was overly generous and dismissed it in January, Musk has repeatedly threatened to leave Tesla to prioritize his other ventures, including SpaceX, xAI, Neuralink, and The Boring Company