Yahoo Finance Tesla closes gap on Britain’s biggest carmakers as sales surge
Tesla’s UK sales accelerated to £2.8bn last year as Elon Musk’s electric cars remained the most popular among British drivers.
Revenues at Tesla Motors UK rose 75pc to £2.8bn in the 12 months to December, up from £1.6bn the previous year, despite industry fears that demand could wane as electricity prices surged. The division reported a profit of £31m.
Registration figures from the Society for Motor Manufacturers and Traders for 2022 ranked Tesla’s Model Y as Britain’s most popular electric car, selling 35,551 vehicles last year. The Model 3 was the second most popular, with 19,701 registrations.
The surge in UK sales suggests Tesla is closing the gap on some of Britain’s biggest car making companies.
Jaguar Land Rover reported annual sales in the UK of £3.1bn in the 12 months ending in March 2022, according to its last annual report.
Meanwhile Volkswagen reported sales in Britain of £9.4bn, according to its latest accounts covering the year ending December 2021.
Mr Musk, the world’s second-richest man, has been hoping to grow Tesla’s car sales volumes by 50pc year-by-year.
Global revenues at the electric car company jumped to $81.5bn (£65.5bn) in 2022, up from $53.8bn the previous year. It reported an annual profit of $12.6bn.
Mr Musk has slashed the price of several of Tesla’s leading models in the UK, telling shareholders he wants to prioritise sales growth ahead of profitability. The company has cut thousands of pounds from the cost of its Model 3 and Model Y cars in Britain in recent months, waging a price war on rival manufacturers.
Despite Tesla’s surging UK sales, car industry experts have warned that demand for electric vehicles is slipping in Britain. Amid the cost of living crisis, online searches for new battery-powered vehicles have fallen two thirds since early 2022, according to Autotrader.
The price of new electric vehicles also remains stubbornly high compared to their petrol equivalents, putting off less affluent buyers.
High electricity costs have stopped some buyers from investing in an electric vehicle, even as petrol prices have come down.
