Norway, a Nordic country, is a nation with a high preference for electric vehicles, as 90% of new car sales are electric. It is a crucial market for the U.S. electric vehicle manufacturer Tesla, but with the recent intensification of global resentment toward Tesla’s Chief Executive Officer Elon Musk, sales of Tesla in Norway have sharply declined.
On 2nd (local time), The New York Times (NYT) reported, "If there is a place where Tesla should thrive, it would be Norway," and noted, "The recent decline of more than 12% in Tesla’s sales in Norway this year is not a good sign." Tesla recorded a high market share, accounting for nearly one-quarter of Norway's car sales last year.
Tesla’s slump began this year. In January and February, Tesla accounted for about 9% of new car sales in Norway, a level that’s less than half of last year’s market share. During the same period, Tesla's share fell to third place in the Norwegian market, lagging behind Volkswagen and Toyota. NYT assessed that Tesla's decline in the world's most developed electric vehicle market suggests potential issues in other regions as well.
The reasons for Tesla's unpopularity in the Norwegian market are complex. First, there is a lack of vehicle variety. Tesla relies heavily on two models, the SUV Model Y and the sedan Model 3, for most of its sales. The latest model from Tesla, the Cybertruck, has virtually no demand due to a recall crisis stemming from issues with exterior panels.
The fact that competitors have caught up to Tesla's technology level is also a factor. Tesla was once the company that led in battery range, software, and driving assistance technologies, setting the "electric vehicle standard." However, as other car manufacturers have become accustomed to producing electric vehicles, they have started to catch up with Tesla. Companies such as Volkswagen, Volvo, BMW, and BYD now offer a wider variety of electric vehicle models than Tesla.
Will Roberts of the research company Rho Motion, which studies electric vehicles, said, "Traditional automakers have also made significant advancements in the electric vehicle sector," adding, "In the past, consumers had no options other than Tesla, but that situation has changed now."
The spread of "anti-Musk" sentiment across Europe has also negatively impacted Tesla. After President Donald Trump was re-elected in January, Musk, appointed head of the Department of National Efficiency, supported far-right parties in Europe, leading to controversy over internal interference. As a result, Tesla is experiencing poor sales in other European countries, including France (-41%), Sweden (-55%), and Denmark (-55%).
The number of registrations for Tesla's flagship Model Y in Europe in February decreased by 56% compared to the previous year, while Model 3 registrations fell by 14%. Overall electric vehicle sales in Europe increased by 25%, but Tesla's market share actually declined. Felipe Munoz, a global analyst at market research firm JATO Dynamics, assessed, "Tesla has had almost a monopoly in Europe and the U.S. for the past few years, but now the situation has changed."
Tesla enthusiasts in Norway are now selling their Tesla vehicles. Geir Rogniien Elgvin, a city planner from Oslo who purchased a Tesla for the first time in 2013 and even visited Tesla's battery gigafactory in Nevada, has recently swapped his Tesla for a battery-operated cargo bike and a Volkswagen. Elgvin stated, "I will never drive a Tesla again."