If there’s a place where Tesla should be dominating, it’s definitely Norway. In this Scandinavian nation, over 90 percent of new car sales are electric vehicles. Buyers here are exceptionally savvy about things like batteries, charging, and vehicle range.
Yet, it’s concerning for Tesla that their sales in Norway saw a drop of over 12 percent so far this year. The situation in Denmark, France, the Netherlands, and Sweden during the first quarter isn’t any better. In fact, Tesla’s global sales took a hit, dropping 13 percent compared to last year’s first quarter.
The company reported nearly 337,000 car deliveries this quarter, down from 387,000 in the same period in 2024. This slump in sales is indicative of various significant issues the company is grappling with, not least of which is the backlash tied to Elon Musk’s conspicuous role in the Trump administration.
Geir Rognlien Elgvin, an urban planner from Oslo, purchased his first Tesla back in 2013, a few months after the brand hit Norway. He even visited Tesla’s Gigafactory in Nevada and met Elon Musk when Musk was mainly recognized for his efforts in combatting climate change through electric cars and SpaceX.
However, as Musk leaned into right-wing politics, Elgvin’s enthusiasm for Tesla faded. He also started worrying about the company’s data security practices. Not long ago, he opted for a battery-powered cargo bike and a shared electric Volkswagen, leaving Tesla behind. “I would never drive a Tesla again,” he commented. “It’s a question of ethics.”
Last year, Tesla accounted for nearly a quarter of the car sales in Norway—more than any other carmaker. Yet, in just the first two months of this year, Tesla’s market position slipped to third, following Volkswagen and Toyota. Now, Teslas only make up 9 percent of new cars, less than half of their market share from a year ago.
For Tesla, dipping sales in the world’s most advanced EV market signals potential trouble globally. “Norway is always a good place to look into the future,” said Will Roberts, an electric vehicles analyst at Rho Motion.
There are multiple reasons for this decline. Tesla’s heavy reliance on the Model Y SUV and Model 3 sedan is one factor. The Cybertruck, Tesla’s latest and rather divisive model, is facing challenges with recalls and hasn’t met Musk’s sales forecasts.
Tesla used to lead with cutting-edge battery range, software, and driver-assistance tech. Nowadays, established carmakers have honed their electric vehicle designs and started catching up with Tesla. Companies like Volkswagen, Volvo, BMW, and beyond U.S. borders, BYD and Xpeng, are rolling out a variety of electric sedans, SUVs, and compact cars.
“Tesla pretty much all of these years has been alone in Europe and the U.S.,” stated Felipe Munoz, a global analyst with JATO Dynamics. “That’s not the case anymore.”
Some of this fall in sales might be attributed to buyers waiting for the updated Model Y, which began deliveries in March in Norway, possibly explaining why March sales dipped just 1 percent from last year.
Nevertheless, Munoz noted that sales of the Model 3, revamped in 2023, have also decreased, albeit not as significantly. In February, registrations for the older Model Y in Europe fell by 56 percent, while the Model 3 saw a 14 percent drop, even as overall electric vehicle sales in Europe surged by 25 percent.
Musk’s support for right-wing parties in Europe and his high-profile role during Trump’s presidency have not done Tesla’s image any favors. His activities have sparked protests and alienated some customers, especially as electric vehicle buyers in many countries tend to lean left politically.
“I hate Musk, I hate Trump, I hate this entire company,” exclaimed Kao Leu, a 75-year-old from New York’s Harlem, protesting outside a Manhattan Tesla dealership recently.
In Sweden, the largest insurer, Folksam, announced Wednesday it had divested from Tesla due to the company’s stance on employee rights, which clashed with Folksam’s investment principles. Folksam had held Tesla shares since 2013, valued at 1.6 billion Swedish krona, or $160 million.
Swedish mechanics, members of the union IF Metall, have been striking for more than a year over Tesla’s refusal to sign a collective bargaining agreement.
While anger is evident, many Norwegians also express shame for backing a company they feel has reneged on making transportation greener and accuse Musk of straying from democratic principles.
Andrea Fresk’s Tesla, covered in winter grime, reflects her mixed feelings towards the car she and her husband financed through a 10-year loan in 2019.
Her discomfort with Musk increased when he acquired Twitter, worsened by his involvement with Trump’s administration. “It became really hard to justify having this car,” said Fresk, a psychologist with Norway’s public family services.
Some of her friends have already parted ways with their Teslas, though she remains hesitant due to ongoing payments and the car’s performance. Meanwhile, Norway’s largest used-car dealer, Rebil, reports a rise in Tesla resales, despite “Tesla Shame” driving resale prices down.
“I’ve had a lot of customers concerned about Tesla,” shared William Oestby, a salesman at Rebil. However, when discussing factors like price, range, and size, Tesla often remains the best option. “It’s hard to find something that compares,” he added.
But changes loom on the horizon. Within the next two years, automakers like Ford Motor, BMW, and Mercedes-Benz plan to debut a fresh generation of electric vehicles. These models, some rolling out before year’s end, promise better battery tech, offering extended ranges and quicker charging times. These companies claim their new offerings will surpass Tesla’s current lineup.
“The traditional automakers have all made a lot of strides forward,” observed Roberts of Rho Motion. “Previously, consumers struggled to find worthy alternatives to Tesla. That’s not true anymore.”
