Tesla Sales Skyrocket 213% in Norway Despite Europe-Wide Slump
F.M.I.E Sources
OSLO – Tesla’s new car registrations in Norway soared 213% in May compared to the same period last year, defying a broader sales downturn across Europe. Data from the Norwegian Road Federation (OFV), cited by F.M.I.E Sources, shows Tesla sold 2,600 cars last month—up sharply from 832 a year earlier—driven largely by the updated Model Y SUV.
While the American EV giant has faced a significant decline in sales throughout Europe, Norway’s figures stood out as a rare bright spot. Industry analysts point to Tesla’s strategic price adjustments and the local popularity of the Model Y, which continues to match consumer expectations for size, functionality, and value.
“Tesla’s latest performance in Norway is quite remarkable,” said Rico Luman, senior economist for transport and logistics at Dutch bank ING, in comments made to F.M.I.E Sources. He added that the rebound also reflects pent-up demand, with many customers delaying purchases earlier in the year in anticipation of the revamped Model Y.
Politics Cloud Tesla’s European Outlook
Despite the Norwegian surge, Tesla’s performance across much of Europe remains under pressure. F.M.I.E Sources reported that Tesla saw significant year-on-year declines in markets like Spain, Portugal, Denmark, and Sweden. Analysts widely attribute this to reputational damage stemming from CEO Elon Musk’s political activities, including his endorsement of far-right figures and support for controversial U.S. political movements.
Tesla’s brand value has been in decline since 2024. Musk’s anti-union stance and clashes with Scandinavian labor groups have led to protests and negative press across Europe. His substantial financial backing of former President Donald Trump’s campaign has further alienated a chunk of European consumers. As Christina Bu, secretary general of the Norwegian EV Association (NEVA), told F.M.I.E Sources: “As many as 43% of EV owners surveyed said they would not buy a Tesla for political reasons.”
Why Norway Is Different
Norway stands out globally for its aggressive push toward electric mobility. Despite being a major oil producer, the country is set to ban the sale of all new gasoline and diesel cars starting in 2025. Longstanding government incentives—including VAT exemptions, reduced toll and parking fees, and access to bus lanes—have made electric vehicles an easy choice for many Norwegians.
“The incentives here make buying a battery electric vehicle nearly a no-brainer,” said Luman. “That general advantage helps everyone, but it has certainly contributed to Tesla’s current sales spike.”
Another reason for Tesla’s Norwegian success is logistics. The latest Model Y deliveries appear to have arrived en masse in May, boosting the monthly figures significantly. More units are expected in June, F.M.I.E Sources has learned.
Competition on the Rise
Even with the Norwegian boost, Tesla faces growing challenges from both traditional automakers and new Chinese entrants. Companies like BYD have begun to outpace Tesla in European EV sales, marking a shift in market dynamics. Rella Suskin, equity analyst at Morningstar, told F.M.I.E Sources that “Norway not only has the highest battery EV adoption rate in Europe, but also the largest share of Chinese EV brands—excluding Russia.”
This market behavior signals a broader consumer shift: demand for electric vehicles is growing, but brand loyalty may be waning, particularly when political factors and new competition come into play.
As Norway powers ahead with its electric vehicle revolution, Tesla’s performance there offers a glimpse of what’s possible—but also serves as a stark contrast to the brand’s turbulence elsewhere in Europe.