Tesla’s (TSLA) grip on the UK electric vehicle market weakened in December 2025. According to New AutoMotive, Tesla’s UK car registrations fell more than 29% year‑on‑year to 6,323 units for the month, reflecting rising competition and shifting consumer sentiment.
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Registrations are widely used as a proxy for sales, making the decline a meaningful indicator of Tesla’s cooling momentum in one of its most important European markets.
Tesla’s UK Struggles Deepen as Rivals Gain Ground
The December slump mirrors the challenge Tesla is facing across Europe. Markets such as France and Sweden saw even sharper declines, driven by intense competition, an aging vehicle lineup, and growing backlash tied to CEO Elon Musk’s political stance in the region.
In the UK specifically, the pressure is coming from fast‑rising rivals, most notably Chinese automaker BYD (BYDDY), whose registrations surged nearly five times to 5,194 units in December.
The December drop also capped a difficult year for Tesla in the UK. For full-year 2025, the company’s registrations fell 8.9% compared to the prior year.
With competitors growing in the UK and consumer preferences shifting, Tesla is under pressure to update its lineup, adjust pricing, and regain momentum in a market it once dominated.
Is TSLA Stock a Buy?
Turning to Wall Street, TSLA stock has a Hold consensus rating based on 13 Buys, nine Holds, and eight Sells assigned in the last three months. At $393.89, the average Tesla price target implies a 12.79% downside potential. The stock has gained 0.43% year-to-date.
