LONDON, March 5, 2026, 15:02 GMT
- February saw Tesla’s UK registrations drop 37% from a year earlier, as BYD posted strong growth.
- Tesla argues that monthly registration data doesn’t tell the whole story, since its UK deliveries come in batches and can skew the numbers.
- Meanwhile, an EU filing revealed that several major automakers won’t be joining Tesla’s planned 2026 CO2 “pool”.
Tesla’s UK sales slumped 37% in February versus the same month last year, according to industry data out Thursday, as Chinese EV makers like BYD ramped up their presence. Tesla, for its part, pushed back, saying “monthly registration figures are not an accurate reflection of sales or orders taken” and arguing that quarterly trends offer a more reliable gauge. Reuters
The fall came against a backdrop of broader market strength in the UK, with total registrations climbing 7.2% to 90,100 — the highest for February since 2004. Tesla’s share took a hit, sliding to 2.69% from 4.58%. BYD, on the other hand, saw registrations surge 83% to 2,154 vehicles, according to SMMT data.
New Automotive’s figures out Wednesday told much the same story: Tesla’s numbers dropped 45.2% to 2,208 cars, while BYD surged 40.9%, reaching 968. “It is fantastic to see one in four motorists opting for an electric car in February,” CEO Ben Nelmes said. Reuters
Those mixed numbers are taking on new significance, as Tesla’s UK results shift from a possible timing blip to what looks like a battle for relevance. New Automotive pointed out that Tesla’s standing has slipped, with Chinese rivals like BYD and SAIC-owned MG crowding showrooms with fresher models, while Tesla’s mainstays grow older.
It’s not just the UK feeling the squeeze. New Automotive highlighted that Tesla’s February sales were also down in Italy, Denmark and Sweden—underscoring just how fiercely Europe’s market is testing the company as Chinese competitors ramp up both volume and price pressure.
Tesla ran into labor friction at its sole European plant, where IG Metall grabbed 13 seats out of 37 in the works council vote at the Berlin-area factory. Non-union contenders kept their grip on the majority, denying IG Metall control once again. “Unfortunately, it was not enough to secure a … majority,” IG Metall’s Laura Arndt said. Reuters
The latest EU filing puts Tesla at the helm of a re-formed carbon-credit “pool” for 2026, this time minus Stellantis, Toyota, and Subaru — all three were part of the group just last year. Toyota Europe commented that it’s still too soon to know if pooling will be necessary, while Stellantis noted it isn’t taking part right now but left the door open for joining later. Reuters
Pooling acts as a compliance shortcut—carmakers group up, letting one company’s low-emission sales balance out the dirtier lineups of others, cutting the chance of EU fines. Should fewer major automakers rely on Tesla to fill that gap, Tesla’s bargaining power in emissions credit deals may take a hit, even if the option remains available through late in the year.
Investors found reasons to move back into Tesla on Wednesday. Shares climbed after Bank of America put coverage back in place with a “buy” rating, calling Tesla poised to “quickly become a leader in robotaxi services.” The upbeat call lands as worries about EV demand and rivals remain. Investopedia
Here’s the wrinkle in the UK sales debate: Tesla registrations are famously erratic, thanks to the company’s habit of batching shipments and deliveries. On top of that, tracking firms don’t all use the same math. If Tesla pulls off a delivery surge late in the quarter, that could soften how the Q1 numbers land. Then again, it might just highlight Tesla’s struggle as upstart Chinese brands ramp up.
