Tesla has seen its sales slump further in the first month of the year, with experts warning that other brands, including China’s BYD, could overtake Elon Musk’s manufacturing company.
Fresh data from New AutoMotive shows that one in three new cars sold in January 2026 came with a plug, including almost 28,000 electric car registrations.
While this is a 6.3 per cent drop compared to the start of 2025, experts say the electric vehicle market will make a rebound in the coming months.
Labour’s ever-expanding Electric Car Grant continues to add more eligible vehicles, with drivers able to save up to £3,750 off the price of a new EV on more than 35 models.
So far, more than 50,000 drivers have made use of the discounts, with Chancellor Rachel Reeves confirming an additional £1.3billion in funding for the incentive scheme in last year’s Autumn Budget.
January also saw a huge shift in driver buying intentions, as BYD doubled the number of electric vehicles sold by Elon Musk’s Tesla.
In the first month of the year, Tesla registered 647 electric vehicles, a concerning drop of 57 per cent compared to the same time last year.
BYD sold a total of 3,878 vehicles, with 34.2 per cent, or 1,326, being electric cars, marking an increase of almost 21 per cent when compared to last January.
Elon Musk faces a major headache as Tesla’s UK sales slumped 57 per cent in January
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REUTERS/GETTY
This huge shift comes as Tesla axes popular EVs from its lineup, including the Model S and Model X, while also moving away from developing an affordable electric car.
Dan O’Dowd, founder of The Dawn Project, told GB News: “BYD is crushing Tesla’s ageing lineup.
“It is no surprise that BYD has overtaken Tesla, given BYD sells vehicles in the UK for under £20,000, while Elon Musk says that an affordable Tesla would be ‘pointless’.
“Tesla’s profits fell 46 per cent in 2025 amid plummeting sales brought about by Musk alienating Tesla’s customer base. BYD is the company that Elon Musk promised us.”
The Tesla Model S and Model X will be discontinued in the coming months | TESLA
Backlash against CEO Elon Musk continues to be felt among potential customers following his jump into the political sphere and close association with US President Donald Trump.
While Tesla continues to lead the battery electric vehicle market in the UK, with around 9.6 per cent of all UK EV sales, other brands are quickly catching up.
BMW, Volkswagen, Audi, Ford and BYD are all increasing their market share of electric vehicles in the UK, marking more than six per cent of the market share.
In particular, BYD has seen a 239.4 per cent increase in its year-to-date electric car sales, while Ford has seen a 197 per cent spike.
BYD was one of the three non-European car companies in the top 10 best-selling electric vehicle brands in the UK last month
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BYDFord is one of a handful of beneficiaries from the maximum £3,750 Electric Car Grant incentive on its Puma Gen-E model and the E-Tourneo Courier van.
Ben Nelmes, CEO of New AutoMotive, said: “It is great to see the UK car market continuing to lead the charge to electrification, with one in three drivers opting for a car with a plug in January.
“Ministers should celebrate the UK’s impressive progress, and be confident that our EV targets are a happy marriage of ambition and pragmatism.”
Tanya Sinclair, CEO of Electric Vehicles UK, emphasised the positive sales trend of consumers, but called for “clarity” and “consistency” from the Government to ensure momentum keeps pace.