Tesla has privately warned the UK government that weakening electric vehicle (EV) rules could reduce battery car sales and put the country’s carbon targets at risk, according to documents obtained by the Fast Charge newsletter.
The US automaker, led by Elon Musk, submitted evidence to a government consultation earlier this year, also calling for “support for the used-car market.”
The warning came after Labour introduced changes to the zero-emission vehicle (ZEV) mandate, which requires automakers to increase EV sales each year. Loopholes in the updated rules allow more petrol and diesel cars to be sold, potentially undermining EV uptake.
Tesla said introducing such flexibilities would suppress battery electric vehicle (BEV) supply, increase emissions, and risk the UK missing its carbon budgets.
The warning follows Chancellor Rachel Reeves’ announcement of a future pay-per-mile charge on electric cars from 2028, which critics say could reduce EV appeal compared with petrol and diesel vehicles. At the same time, grants for new electric cars were extended, a move welcomed by the industry.
Other carmakers, including Ford and Mercedes-Benz, opposed stricter post-2030 rules, seeking to maintain higher emissions allowances. Tesla also urged a ban on plug-in hybrids with a battery-only range under 100 miles after 2030 and highlighted the competitive threat from lower-cost Chinese manufacturers without a UK presence.
Tesla, Ford, and Mercedes-Benz declined further comment. Analysts say the warnings underline tensions in the UK’s EV transition, with policies pulling in conflicting directions that could impact sales, investment, and climate goals.
