's struggles in Europe have spilled over into the UK, with January 2026 registrations falling more than 57% year-on-year to just 647 vehicles. The drop was the steepest among major carmakers and far exceeded the overall 6.4% decline in UK electric vehicle sales (this month).
Competitors are growing – Tesla is collapsing
While Tesla collapsed, its Chinese rival BYDsold 1,326 electric vehicles in the UK last month, up 21% year-on-year. Ford led the BEV market in January, more than doubling its sales to 2,271 units.
See also: The Tesla Model S changed everything
Total car registrations in the UK, across all fuel types, fell by 4.6% to 133,571 vehicles. The data points to growing pressure on Elon Musk's company, which is losing ground in the UK, its biggest market in Europe. The company faces fierce competition from mainly Chinese brands such as BYD and MG.
Tesla launched cheaper versions of the Model Y and Model 3 to revive sales in the UK, but that wasn't enough to stop the decline. The UK slump adds to Tesla's problems in Europe, which will start in 2026.
See also: Tesla: New four-wheel drive version of Model Y in the US from $41,990
January 2026: Tesla registrations in Europe
The prevailing picture in the main markets:
| Country | Jan 2025 | Jan 2026 | YoY Change |
|---|---|---|---|
| United Kingdom | 1,505 | 647 | -57.0% |
| Italy | 407 | 713 | +75.2% |
| Belgium | 1,004 | 693 | -31.0% |
| France | 1,140 | 661 | -42.0% |
| Sweden | 405 | 512 | +26.4% |
| Denmark | 444 | 458 | +3.2% |
| Spain | 268 | 456 | +70.1% |
| Portugal | 389 | 377 | -3.1% |
| Netherlands | 927 | 307 | -66.9% |
| Norway | 689 | 83 | -88.0% |
| Total (10 purchases) | ~7,178 | 4,907 | -31.6% |
The numbers paint a grim picture. The 88% collapse in Norway is particularly striking, given that it was one of Tesla's few bright spots in 2025. The Netherlands (-67%) and the United Kingdom (-57%) are experiencing similar freefalls.
See also: Tesla halts production of Model S and Model X
Only three markets showed growth: Italy (+75%), Spain (+70%) and Sweden (+26%). The biggest growth comes from Italy, thanks to new incentives for electric vehicles that came into effect in 2026. However, it is clear that it is not enough to compensate for other markets, where Tesla sales are collapsing even compared to the difficult start to 2025 (due to the Model Y change).
The UK was supposed to be Tesla's European stronghold. It's their biggest market on the continent, and British buyers have historically shown greater acceptance of American brands. But 647 cars in one month is a very small number.
