Tesla Inc. has just posted one of its best ever quarters, with a significant increase in deliveries. However, the view from Britain’s car showrooms may explain why investors remain nervous.
Rising Competition from Chinese EVs
Chinese automaker Geely has reportedly surpassed 1,000 UK registrations in a single month and expects to double that figure within months. The brand only launched in Britain last October and has already appointed close to 80 retail sites. Customers are drawn to Geely’s affordable prices and the value for money that its vehicles offer.
Why Britain is a Key Market for Chinese EVs
Chinese vehicle imports to the UK have surged from under 1,000 units in 2015 to over 285,000 in 2025. Chinese-owned brands have captured a record 16.5% of the UK market, according to recent data. The EU charges Chinese EV makers company-specific tariffs, but Britain has not followed suit, making it the cheapest major European market for Chinese cars to enter.
BYD Overtakes Tesla in the UK
BYD has already become Britain’s best-selling EV brand this year, despite not qualifying for the government’s Electric Car Grant. Meanwhile, the UK government plans to cut the 2030 zero-emission vehicle mandate from 80% of new car sales to 50%. This move would shrink Britain’s guaranteed EV market and weaken the regulatory credit sales that Tesla profits from.
Impact on Tesla’s Stock
Traders currently price a 53% chance that Tesla will top 500,000 deliveries in a single quarter before 2027. The odds have surged since the delivery report, from roughly one-in-five in June. Whether Tesla reaches this milestone may depend on Europe, the region that did the heavy lifting last quarter and where Chinese rivals are advancing fastest.
Key Takeaways
- Chinese EVs are gaining momentum in the UK, threatening Tesla’s revival
- Geely has surpassed 1,000 UK registrations in a single month and expects to double that figure
- Britain is a key market for Chinese EVs due to the lack of tariffs
- BYD has overtaken Tesla as Britain’s best-selling EV brand
- The UK government’s plans to cut the 2030 zero-emission vehicle mandate may weaken Tesla’s regulatory credit sales
What’s Next for Tesla?
Tesla reports second-quarter earnings after Wednesday’s close, where the robotaxi rollout and European demand may dominate the call. The company’s ability to compete with Chinese EVs in the UK and other European markets will be closely watched by investors.