Tesla's struggles in Europe have reached the UK, with January 2026 registrations plunging more than 57% year-over-year to just 647 vehicles, according to new data. 4% drop in overall UK battery-electric vehicle sales for the month. While Tesla collapsed, Chinese rival BYD nearly doubled Tesla's volume, selling 1,326 battery-electric vehicles in the UK last month, up 21% year-over-year.
Ford led the UK's BEV market in January, more than doubling its sales to 2,271 units. 6% to 133,571 vehicles in January. The data points to mounting competitive pressure on the Elon Musk-led company, which has been losing ground in the UK, its largest European market, as its aging lineup faces intense competition from Chinese brands such as BYD and MG.
Tesla launched cheaper Model Y and Model 3 variants to jumpstart UK sales, but it hasn't been enough to stem the bleeding. The UK collapse adds to Tesla's brutal start to 2026 in Europe. The numbers paint a grim picture.
Norway's 88% collapse is particularly striking given it was one of Tesla's few bright spots in 2025. The Netherlands and UK are experiencing similar freefall. Only three markets showed growth: Italy, Spain, and Sweden - though all from relatively small bases.
The biggest growth comes from Italy, thanks to new EV incentives put in place in 2026. However, it's clear not enough to compensate for other markets, where Tesla's sales are crashing even compared to its tough start of 2025 amid the Model Y changeover. The UK was supposed to be Tesla's fortress in Europe.
It's their largest market on the continent, and British buyers have historically been more receptive to American brands than their continental counterparts. But 647 cars in a month? That's not a sales decline, that's a collapse.
Musk's political activities have clearly damaged the brand in Europe, and the data keeps getting worse. We've been tracking this decline for months, and there's no sign of a bottom yet. I do think Tesla is going to hit it this year, but at what level?
If Tesla's EU sales dip below 200,000 in 2026 (~240,000 in 2025), I don't think it's a sustainable business for the automaker in Europe. With Germany, Switzerland, and other major markets still to report, January's final tally could be even worse, but we won't have a good idea before Q2.
Tesla's struggles in the UK are a clear indication of the intense competition in the European EV market, where Chinese brands like BYD are gaining ground. As Tesla's aging lineup faces increased pressure, it will be crucial for the company to revamp its strategy to regain market share.
