Tesla Warns U.K. EV Rollback Risks Climate Targets

Image: Tesla

Newly disclosed government documents show Tesla privately warned the U.K. that loosening electric vehicle regulations could slow battery-electric sales and jeopardize the country’s climate targets. The submissions — obtained by EV newsletter Fast Charge via a freedom of information request and first reported by The Guardian — reveal Tesla urging the government not to introduce new loopholes in the zero-emission vehicle (ZEV) mandate.

In its filings, Tesla said it was “essential” that the Labour government avoid adding regulatory “flexibilities” that would allow automakers to sell more petrol and diesel cars. Such changes, Tesla argued, “will suppress battery electric vehicle supply, carry a significant emissions impact and risk the U.K. missing its carbon budgets.”

The concerns come as the U.K. shifts its EV policy landscape in conflicting directions. Earlier this year, the government softened ZEV rules, worrying EV-focused manufacturers. And while last week’s budget introduced new EV purchase grants, it also added fresh headwinds — including a pay-per-mile tax on electric cars starting in 2028, a change critics argue could reduce demand just as adoption is accelerating.

Tesla also called for more “support for the used-car market,” though heavily redacted pages leave the details unclear. The company further proposed banning plug-in hybrids with fewer than 100 miles of electric-only range after 2030 — a threshold that would disqualify many popular PHEV models.

The pushback is notable given Tesla’s strong footing in the U.K., where regulators were among the first globally to approve Full Self-Driving (Supervised) for public use. The country has also previously courted the company to build a Gigafactory and, beyond strong EV sales, Tesla is now preparing to enter the U.K.’s household electricity market as an energy supplier.

Meanwhile, rival automakers like Ford and Mercedes-Benz lobbied the government in the opposite direction, warning that stricter emissions rules after 2030 could hurt competitiveness, particularly against lower-cost Chinese manufacturers. Their documents also revealed calls for lower VAT on public charging and new pricing caps.

With EV adoption climbing — fully electric vehicles represented roughly one in four new cars sold in the U.K. as of October — Tesla is warning London not to jeopardize its momentum. As the company argues, relaxing EV rules now could slow the transition just as electric cars begin to scale.