How Strong Is Tesla's Lead Over Rival EVs in the United Kingdom?

Tesla’s TSLA Model Y and Model 3 continue to dominate electric vehicle sales in the United Kingdom with about two weeks left in the year by a wide margin, per Teslarati.

The Model Y leads with 18,890 units sold so far this year, followed by the Model 3 at 16,361, per data from EU-EVs. The closest competitor, the Audi Q4 e-tron, trails well behind at 10,287 units, though it still outpaces models such as the BMW i4 and Audi Q6 e-tron.

While the Model Y has performed strongly worldwide, it has been especially dominant in major markets like Europe and the United States. Its appeal has long stemmed from a blend of premium features, interior space and an emphasis on sustainability that aligns closely with consumer preferences.

Both Tesla models are expected to post lower sales than in 2024, per Teslarati. Last year, the Model Y topped the U.K. market with 32,610 units sold, while the Model 3 reached 17,272 units, which puts this year’s Model 3 sales roughly in line with last year’s pace.

Overall, Tesla sold 50,090 vehicles in the United Kingdom in 2024, but is currently about 8,000 units behind that pace. The company’s market share has also declined from 13.2% last year to 9.6% with two weeks left in 2025. Even so, Tesla remains the market leader, ahead of Volkswagen’s 8% share. TSLA carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TSLA’s Price Performance, Valuation and Estimates  

Tesla has outperformed the Zacks Automotive-Domestic industry and its peers, Lucid Group, Inc. LCID and Ford Motor Company F, in the past six months. TSLA’s shares have gained 49.8% compared with the industry’s growth of 45.6%. Shares of LCID have plunged 47.7%, while shares of Ford have gained 25.8% in the same period. 

 
From a valuation perspective, TSLA appears overvalued compared to the industry and peers. Going by its price/sales ratio, the company is trading at a forward sales multiple of 15.23, higher than the industry’s 3.48. Lucid is trading at a forward P/S ratio of 1.7, while Ford is trading at 0.32.

 
The Zacks Consensus Estimate for TSLA’s 2025 EPS has fallen 5 cents in the past 60 days. The Zacks Consensus Estimate for TSLA’s 2026 earnings per share has fallen a penny in the past seven days.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research