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Writer's pictureEditor Darren Birks

Tesla Lobbied UK for Tax Hike on Petrol Car Owners

Elon Musk, the billionaire CEO of Tesla, secretly lobbied the UK government to impose higher taxes on petrol car drivers a FOI request has revealed.


Musk, who has recently reinvented himself as a freedom-fighting Republican has been found to have secretly lobbied the UK government to raise taxes on petrol cars, despite UK drivers paying some of the highest taxes in the world already.


Tesla's lobbying efforts were revealed in a report obtained by The Guardian on 10 December 2024, detailing the company's push for what it called “Green Transition Levies”—a proposed surcharge on fossil fuel-powered vehicle users.


The document stated, “Revenue from such levies should be redirected to subsidise electric vehicle adoption.” Critics argue this initiative unfairly burdens ordinary motorists while benefiting Tesla’s market dominance but that it artificially makes it look as if green alternatives are cheaper when the opposite is the case.


Former Transport Secretary Grant Shapps commented, “This proposal reeks of self-interest disguised as environmental advocacy.” The lobbying campaign dates back to January 2024, when Tesla representatives met with the Department for Transport officials, including Permanent Secretary Dame Bernadette Kelly. Internal memos from the meetings indicate Tesla’s persistence in advocating for higher taxes on petrol drivers, coupled with demands for increased grants for electric vehicle manufacturers. According to records, Musk’s team made similar overtures in meetings with MPs on the Environmental Audit Committee in February.


Public reaction has been fierce. Conservative MP Jacob Rees-Mogg lambasted Musk’s approach, stating in a Sky News interview, “He preaches about freedoms, yet his policies would penalise millions of hard-working Britons.”


Twitter user @DriverRights2024 wrote, “So Musk claims to be a free-market advocate, but only when it lines his pockets. Hypocrisy at its finest.”


Meanwhile, environmentalists are divided, with activist group Clean Roads tweeting, “We support clean energy, but targeting low-income families who can’t afford EVs is wrong.”


Figures from the Department for Transport in 2023 show 67% of UK households rely on petrol or diesel cars, with 40% of them citing financial barriers to switching to electric vehicles. A study by the Office for National Statistics in March 2024 indicated the average cost of a new EV remains £32,000, compared to £15,000 for petrol cars. The Tesla Model 3, priced at £38,000, far exceeds this average. In recent months many car makers have abandoned their drive for all-electric fleets after the market failed to materialise.


Details of Tesla’s lobbying efforts were published in the Register of Interests and the Environmental Lobbying Report 2024. These revelations highlight how Musk’s policies could exacerbate inequalities while consolidating Tesla’s dominance under the guise of environmentalism.


The controversy surrounding Tesla’s lobbying may prompt further scrutiny into corporate influence on UK tax policies. Opposition MPs have called for an inquiry into “corporate lobbying tactics undermining public trust.” With public resistance mounting, the government’s response could shape the trajectory of the green transition in Britain. The debate raises broader questions about fairness, corporate ethics, and who ultimately pays the price for environmental progress.

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