Norwegian buyers "immune" to Musk's political controversies, helping Tesla's sales in Norway grow against the trend by 24% in the first half of the year

According to the Zhitong Finance APP, Tesla (TSLA.US) has had a dismal sales performance in Europe this year, primarily due to the political stance of its CEO, Elon Musk, which has sparked consumer dissatisfaction, leading to acts of vandalism against Tesla electric vehicles and dealerships in some areas, and prompting some formerly loyal customers to distance themselves from the brand. However, Norway is an exception, as the sales of Tesla electric vehicles in this Nordic country have seen a significant increase—at least for now.

Data shows that in the first half of this year, Tesla's sales in Germany, Sweden, Denmark, and the Netherlands plummeted by half or more year-on-year, while sales in Norway increased by 24% year-on-year, making this country of only 5.5 million people Tesla's second-largest market in Europe.

Interviews with Norwegian Tesla owners and electric vehicle industry experts reveal that the 12-year relationship between Tesla and this Nordic country—despite some recent signs of tension—has fostered brand loyalty and somewhat insulated it from external negative influences.

Christina Bu, Secretary General of the Norwegian Electric Vehicle Association, stated, "In a sense, you could say that Norway has helped make Tesla successful. In Norway, everyone knows someone who owns a Tesla. It's a more personalized relationship."

Although the Norwegian market is small—Tesla's sales in Norway accounted for less than 12% of its European sales in the first half of this year and contributed only a small portion to the company's global revenue—Norway holds significant symbolic importance for the Tesla brand.

In 2013, Norway became the first country outside North America to receive Tesla's flagship electric vehicle, the Model S. Tesla established its first Supercharger network outside North America in Norway, committing to large fast-charging stations to attract new customers. In 2021, Tesla became the best-selling car brand in Norway, maintaining a share of 11% to 20% in new car registrations over the past five years.

Tesla has also helped Norway become the country with the highest electric vehicle penetration rate in the world, with electric vehicles now accounting for 94% of new car sales in the country. In return, Norway provides Tesla with a global stage to showcase its technology, and Musk has praised the Norwegian government's electric vehicle subsidy policies.

However, Tesla's dominant position is facing challenges. Volkswagen briefly took the sales crown in the first quarter of this year, and Volvo's electric models have quickly gained favor among Norwegian consumers. Meanwhile, Chinese automakers, including BYD, XPeng, and MG under SAIC Group, collectively captured 12.3% of the new car market share in June this year.

For Tesla, the key question is whether the brand loyalty of Norwegians can be sustained. A survey released by polling agency Norstat in February showed that 40% of Norwegian Tesla owners believe Musk's political actions are harming the brand, but more than half of the owners expressed their intention to purchase Tesla again.

Currently, Tesla has successfully resisted the increasingly severe threats to its dominant position in Norway and has overcome public disappointment towards Musk. Despite a 4% decline in new registrations for Tesla in Norway last year and sluggish sales in the early months of 2025, Norwegian consumers quickly snapped up the refreshed Model Y launched by Tesla in March and the lower-priced version released in May Oyvind Solberg Thorsen, head of the Norwegian Road Federation (OFV), stated: "For Norwegian buyers, the ease of use, meeting needs, and affordability of vehicles are more important than facing the 'Tesla shame'." It is reported that Tesla conducted a large-scale promotion in May, launching zero-interest financing and free supercharging activities, which likely drove a 213% surge in Tesla's new car registrations in Norway. However, the same promotional activities did not work in neighboring Nordic countries Sweden and Denmark. According to OFV data, in July this year, no Tesla models made it into the top ten sales in these two countries