Tesla’s UK revenues have fallen for the first time in more than a decade as Elon Musk’s electric car company grapples with a slowdown in demand.
According to the latest accounts for Tesla’s British arm on Companies House, sales fell from £2.84bn to £2.47bn in the 12 months to December 2023.
The drop in sales brings the company’s recent momentum to a halt in the UK, where it has enjoyed constant sales growth since 2013.
It comes amid a broader reduction in global demand for electric cars, as high prices and so-called range anxiety drive away buyers.
Mr Musk’s business is also facing questions about its ageing car line-up as Chinese brands attempt to flood the market, with its global sales also falling during the first six months of 2023.
The latest accounts for Tesla’s UK division, which covers both cars and its energy operations, revealed its automotive revenues fell from £2.5bn to under £2bn in 2023.
This slump was partly offset by a boost to its energy division, which saw sales jump from £167.3m to £336.3m, driven by increased demand for its Powerwall home batteries.
Despite its declining revenues, Tesla’s Model Y remained the most popular electric vehicle in the UK in 2023, according to data from the Society of Motor Manufacturers and Traders (SMMT).
A total of 49,571 new Teslas were registered in the UK in 2023, according to SMMT data, down from 54,622 the year prior.
Matthias Schmidt, the founder of Schmidt Automotive Research, said Tesla’s falling UK revenues could be blamed on recent price cuts as the carmaker seeks to maintain its growth rate.
He added the market was only becoming more competitive, as traditional rivals aim to meet strict EV targets set by the Government.
Mr Schmidt said: “The UK market environment for Tesla is also much more competitive in 2024 as other manufacturers, driving to meet 2024 ZEV mandate targets, are introducing a broader battery electric vehicle product range and are also discounting to avoid missing the regulatory targets.”
The latest results come after Mr Musk last week revealed Tesla’s plans for a robotaxi service, dubbed the Cybercab.