Tesla (TSLA) owner Elon Musk continues to go to war with the British government – but this time it is over its electric vehicle rather than immigration policies.
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Musk’s Private Warning
According to a report in the Guardian newspaper, Tesla has privately warned the U.K. government that weakening electric vehicle rules would hit battery car sales and risk the country missing its carbon emission targets.
The EV maker also reportedly called for “support for the used-car market”, according to submissions to a government consultation earlier this year obtained by Fast Charge, a newsletter covering electric cars.
The concerns relate to changes made by the government back in the Spring to its zero-emission vehicle mandate allowing carmakers to sell more petrol and diesel cars.
Tesla said that these changes “will suppress battery electric vehicle (BEV) supply, carry a significant emissions impact and risk the UK missing its carbon budgets.”
Pay for Potholes
In its budget last week the Labour government added to industry concerns by slapping a new 3p-a-mile charge for electric cars from 2028 to help pay for road maintenance projects like potholes. This could further hit demand for EVs as it makes it less attractive for drivers to switch from petrol powered cars.
Tesla is finding the UK an increasingly challenging market. Earlier this month it was revealed that Chinese group BYD (BYDDY) had surpassed it in UK sales. Year-to-date figures showed that BYD’s sales had increased more than sixfold to 39,103 vehicles, while Tesla’s registrations had declined 4.5% to 35,455.
That could be partly down to Musk’s links to right wing politicians and influencers in the U.K. as well as Musk calling for the dissolution of parliament and a new election to be held to oust the Labour government and Prime Minister Keir Starmer.
Although the U.K. is not a huge revenue spinner for Tesla – see above – it has plenty of potential given its rich motoring history.
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