Newly disclosed documents indicate that Tesla privately cautioned the UK government that loosening EV regulations would affect fully electric sales and threaten the country’s climate targets.
The documents were part of submissions to a government consultation earlier this year, obtained by EV newsletter Fast Charge and first reported by The Guardian.
Tesla said it was “essential” for electric vehicle sales that the government did not introduce new loopholes, known as “flexibilities.”
Changes “will suppress battery electric vehicle supply, carry a significant emissions impact and risk the UK missing its carbon budgets,” the Elon Musk-led company stated.
According to Tom Riley, the author of Fast Charge, Tesla has objected to its responses to the government being shared.
They were obtained on appeal under the Freedom of Information Law, and Riley pointed out that many pages were heavily redacted.
One heading revealed that Tesla had called for “support for the used-car market,” however, no further information was detailed.
The company also proposed banning the sale of plug-in hybrid electric vehicles (PHEVs) with a battery-only range under 100 miles after 2030.
EV Adoption
According to these goals, new vehicles sold in the UK from 2030 on will have to be electric or plug-in hybrid — when a ban on the sale of new petrol and diesel cars comes into force.
As of October, new petrol and diesel vehicles accounted for 71,267 of the 144,948 units sold, giving them a market share of 49.2% — nearly half of all vehicle sales in the UK.
This came despite year-on-year declines of 11.6% for petrol cars and 22.9% for diesel.
In contrast, battery electric vehicles (BEVs) and PHEVs saw their market share grow by more than 20% compared with October 2024.
Fully electric vehicles alone made up 25.4% of total sales, meaning roughly one in four new cars sold in the UK was electric.
As of press time, November figures had not yet been released.
New Rules on EVs
These trends could shift when the new policies are implemented.
From April 2028, electric vehicles will be submitted to a ‘pay-per-mile’ road charge of 3p per mile, while plug-in hybrid drivers will pay 1.5p per mile. The rates are expected to increase with inflation each year.
The government argued for a “fairer system for all drivers,” pointing out that petrol and diesel vehicles are exempt from any equivalent fuel duty.
In London, electric vehicles will also begin paying the congestion charge from 2026.
Vehicle Excise Duty
Additionally, the Vehicle Excise Duty (VED) in the UK was updated for electric and zero or low emission vehicles on April 1, 2025.
Any vehicle purchased or leased in the UK from then on pays a £10 road tax in its first year, which raises to £195 from the second year on.
Vehicles registered between March 1, 2001, and March 31, 2017, pay a £20 tax, while vehicles that were registered between April 1, 2017, and March 31, 2025, currently pay the £195 rate.
Expensive Car Supplement
Besides the VED, any vehicle priced above £40,000 ($53,700) is subject to the Expensive Car Supplement (ECS), introduced in 2017, according to which any vehicle priced above £40,000 ($53,700) pays an additional $425 for a five-year period.
In late May, a leaked letter by Minister Lilian Greenwood noted that the British Government was considering changes to the controversial ‘Tesla tax,’ admitting it could be “disproportionate.”
In April 2026, the price threshold will increase to £50,000.
