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UK diesel sales see drastic decline amid Tesla and electric cars’ meteoric rise

A right-hand-drive Tesla Model 3. (Photo: Mick Paul/Twitter)

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Electric vehicles are becoming increasingly popular in the United Kingdom, while cars that are powered by diesel are seeing a decrease in demand. These statistics are based on figures released by The Society of Motor Manufacturers and Traders (SMMT), a trade association for the automotive industry in the UK.

“Alternatively fueled vehicle (AFV) registrations reached a record market share, with more than one in 10 cars joining UK roads either hybrid, plug-in hybrid or pure electric,” the SMMT said. Compared to the month of November 2018, Battery Electric Vehicles (BEV) saw a 228.8% increase in sales, and became more than three times as popular in terms of market share, moving from 0.9% in 2018 to 3.0% in 2019, according to data released by the SMMT.

Inversely, Diesel plummeted dropped over 27% from what the UK saw in 2018. While these cars are still notably more popular than BEVs, Plug-in Hybrid Electric Vehicles (PHEV), or Hybrid Electric Vehicles (HEV) in terms of overall sales, their numbers are falling at a steady rate. Last month, only 36,941 diesel vehicles were sold, compared to 50,750 for the same month in 2018.

This decline in diesel sales could be attributed to former Chancellor of the Exchequer, the Royal Treasury, Philip Hammond’s decision to tax older diesel-powered vehicles last year. The tax charges £12.50 daily to diesel drivers in central London and took effect in April 2019. Next year, vans, buses, and other heavy pollution-emitting vehicles will see guidelines that may bring additional taxes, according to The Guardian. Weak business in the automotive market, decreasing consumer confidence, and uncertainty regarding clean air zones could also be attributed to the decreasing sales of diesel cars.

It is no secret the appeal of electric cars has been spreading across the world. However, the need to ween off the dependence on petrol-powered vehicles is coming from the UK’s goal to phase-out fossil fuels as an energy source for cars in the coming years. In Scotland, the goal is 2032, while in England, Wales, and Northern Ireland, the goal is a bit more conservative at 2040.

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Tesla’s presence in the UK has become more notable as of late. The Model 3 won the “Car of the Year”, “Best Electric Car”, “Best Company Car”, and “Best Safety” awards from the prestigious automotive magazine Parker’s Car Guides, who were impressed with the vehicle in a multitude of ways. Parker’s representatives said the vehicle was “capable, likable, and extremely good to drive,” a description that seems to be used quite often when talking about Tesla’s most affordable electric car. It was also named the third best-selling car in the UK by the SMMT.

The SMMT’s report that diesel vehicle sales are falling while electric car sales are rising may be a sign that those in the UK are recognizing the economic and environmental advantages of battery-powered transportation. Even some who are interested in high-performance vehicles are now finding their preferences shift to electric propulsion, as the instant torque from a premium EV like a Tesla gives vehicles an exhilarating experience.

Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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tesla showroom
Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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Elon Musk takes latest barb at Bill Gates over Tesla short position

Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now

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Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.

Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.

The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.

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Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:

Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.

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Tesla CEO Elon Musk sends final warning to Bill Gates over short position

Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”

“Gates is a huge liar,” Musk responded.

It is not known whether Gates still holds his Tesla short position.

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