Tesla’s UK operations witnessed a dramatic £500 million drop in revenue during the 2024 financial year, newly filed documents reveal, painting a picture of a challenging period for the electric vehicle (EV) giant in one of Europe's key markets.
According to the latest filings lodged with Companies House, Tesla Motors Limited, the Manchester-based subsidiary, reported a steep decline in both sales and profitability. The figures show revenue fell to £1.94 billion for the year, down significantly from £2.47 billion in 2023. Pre-tax profit also took a substantial hit, declining from £32 million to £19.4 million—a drop of nearly 40 per cent.
The official documents, which provide a detailed breakdown of the company's financial health, can be viewed on the Companies House website here.
A Closer Look at the Numbers: Where Did the Revenue Go?
While the headline revenue figure is stark, a deeper dive into the filing reveals the complex factors at play. Interestingly, Tesla UK noted that its overall sales volumes "slightly exceeded" the previous year's levels. This suggests that the revenue crash wasn't due to selling fewer cars, but rather selling different cars at lower prices.
The breakdown of revenue streams confirms this:
- Car Sales: Revenue from vehicle sales fell from £1.9 billion in 2023 to £1.6 billion in 2024. This was likely driven by a strategic shift in product mix towards more affordable models like the Model 3 and Model Y, combined with widespread incentive programmes and price cuts implemented globally by Tesla to stimulate demand in a competitive market.
- Energy & Storage: This sector saw an even more pronounced decline, with earnings plummeting from £336.3 million to £135.6 million. This indicates potential challenges or strategic pivots in Tesla's solar and Powerwall business within the UK.
Despite this weaker financial performance, Tesla UK still issued a hefty £67 million dividend to its ultimate parent company, Tesla Inc., in the United States.
A Global Context: Tesla's Worldwide Growing Pains
The struggles in the UK reflect a broader narrative for the Tesla group worldwide. The parent company reported a net income of $2.3 billion (£1.83 billion) for 2024, a staggering decrease of more than 70 per cent from the previous year. This profit squeeze came even as global sales revenue edged up marginally from $96.8 billion to $97.7 billion, highlighting the intense pressure on margins from price wars and increased competition.
As reported by City A.M., the UK dividend payout occurred against this backdrop of falling global profits, underscoring the financial interconnections within the corporate giant.
Green Shoots of Recovery in the UK Market?
Despite the gloomy 2024 financial report, there are emerging signs of resilience for Tesla in the UK. Recent data from the Society of Motor Manufacturers and Traders (SMMT) offers a more optimistic outlook for 2025. The figures showed that Tesla's UK car sales in August 2025 actually rose by 7.63 per cent year-on-year.
This growth was supported by a wider, ongoing increase in electric vehicle adoption across the country, even as the overall new car market experienced a decline. This suggests that Tesla's brand appeal and its more affordable models may be helping it to regain momentum.
Looking to the Future: New Products and a Bold Energy Play
Looking ahead, Tesla's board has outlined expectations for a return to growth in 2025, contingent on broader economic conditions and a slate of new product launches, including the anticipated "Robotaxi" and updated vehicle models.
Perhaps more intriguingly for the UK market, Tesla recently applied for an electricity supply license. This strategic move could see the company launching a new retail energy business for British homes and businesses as soon as next year. Tentatively referred to as 'Tesla Electric,' this venture would leverage its expertise in battery storage and solar, creating a new, significant revenue stream and further integrating its ecosystem into customers' lives.
In a separate but headline-grabbing development, CEO Elon Musk remains a focal point of attention. Tesla's board has proposed a restructured pay package for Musk, potentially worth up to $1 trillion (£820 billion), making it the largest in corporate history. This package is directly tied to ambitious future growth targets, signalling the board's confidence in a dramatic future expansion, even after a year of financial setbacks.
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