Tesla's UK Downturn: Challenges Amid EV Market Growth

Tesla's new car sales in Britain fell 62% in April, reaching a two-year low despite rising demand for electric vehicles. The brand's market share dropped, but the launch of the revamped Model Y aims to capture lost interest. Broader economic factors and political controversies affect sales.

Tesla experienced a significant decline in new car sales in the UK, with a 62% drop year-on-year in April, marking the lowest point in over two years, according to data from New AutoMotive. This decline comes despite an overall rise in demand for electric vehicles.

Elon Musk's electric vehicle brand also faced similar challenges in key European markets, as seen in last month's national data. Tesla plans to address competitive pressure from European and Chinese EV manufacturers by launching the revamped Model Y. However, Tesla's UK sales dropped, indicating a market share of 9.3% due to selling 536 new vehicles in April, a stark contrast to the 1,404 units sold in the same period in the previous year.

The updated Model Y is expected to start deliveries in June in the UK, but it will take several months to determine its market performance. Meanwhile, Musk's political affiliations and controversial stances have prompted protests and vandalism against Tesla facilities. Despite these challenges, the UK's battery-electric car registrations grew by 6.9% in April, with competitors like Volkswagen and China's BYD showing significant sales increases.

(With inputs from agencies.)