If there is a place where Tesla thrives, it is Norway. Electric cars account for more than 90% of new car sales in Scandinavian countries, and buyers here are one of the most sophisticated in the world when it comes to understanding the nuances of batteries, charging and range.
Therefore, for Tesla, it has rarely seen sales in Norway fall by more than 12% this year. Sales for the first three months of this year have worsened in Denmark, France, the Netherlands and Sweden. Analysts expect the downward trend to be reflected when reporting global sales for the first quarter on Wednesday.
Wall Street analysts expect Tesla delivery worldwide to decline sharply from the previous year, reflecting several serious issues, particularly reflecting consumer backlash against the prominent role that the company's CEO Elon Musk plays in the Trump administration.
Oslo city urban planner Geia Rognien Ergbin bought his first Tesla in 2013 months after being featured in Norway. He toured the company's battery Giga Factory in Nevada. He met Musk when the executive was largely known for wanting to deal with climate change with electric vehicles and his rocket company SpaceX.
But as Musk wafted into right-wing politics, Ergvin's enthusiasm faded. And he worried about the company's data security policy.
A few months ago he replaced the Tesla for a battery-powered cargo bike and a shared electric Volkswagen. “I'm not going to drive a Tesla again,” he said. “It's a matter of ethics.”
Last year, Tesla accounted for much more than any other car manufacturer, accounting for almost a quarter of car sales in Norway. However, for the first two months of the year, Tesla skated to third place behind Volkswagen and Toyota. Teslas accounted for just 9% of new car sales, less than half the market share a year ago.
For Tesla, the decline in the world's most advanced electric car market is ominous and informs us that it's coming elsewhere. “Norway is always a good place to look at the future,” said Will Roberts, who chases electric vehicles at research firm Rho Motion.
There are several explanations for Tesla's decline in sales. The company relies on two models, the Model Y Sports Utility Vehicle and the Model 3 Sedan for almost all sales. Tesla's latest and most polarized model, CyberTruck Pickup, is suffering from recalls and is not on sale at the same time Musk predicts.
Tesla once set standards for battery range, software and driver assistance technology. However, traditional carmakers have become adept at building electric vehicles and are beginning to catch up with Tesla, technology. Competitors such as Volkswagen, Volvo and BMW, as well as BYD, XPENG and other Chinese manufacturers outside the US offer a diverse selection of luxury sedans, minivans, pickups and compact cars.
“Most of Tesla was alone in Europe and the US,” said Felipemunoz, a global analyst at research firm Jato Dynamics. “That's not the case anymore.”
Analysts say that part of the decline in sales could be due to buyers waiting for an upgraded version of the Model Y. Delivery for that version began in Norway in March. This explains why the company's sales fell by just 1% since March 2024 last month.
However, Munoz noted that sales of the Model 3, which was updated in 2023, are also declining.
According to Jato, in February, European registrations in Europe fell by 56%, while Model 3 registrations fell by 14%. The decline occurred despite an overall sales of European electric vehicles increasing by 25%.
Musk's support for European right-wing parties and his role as President Trump's chief do not aid Tesla's image. He is the focus of protests in the US and Europe, and his activities alienate some customers. Electric car buyers in most countries are leaning politically to the left.
“I hate musk, I hate Trump, I hate this whole company,” said ka leu, a 75-year-old resident of New York's Harlem district, who was protesting outside Manhattan Tesla dealers last week.
In Sweden, Folksam, the country's largest insurance company, said it sold its shares in the US automaker on Wednesday as Tesla's approach to employee rights violates the company's investment standards. Folksam has been investing in Tesla since 2013, and its shares were worth 1.6 billion Swedish Crona, or $160 million.
The mechanism with the union refused Tesla to sign a collective agreement if Metal had been on a strike in Sweden for more than a year.
More than anger, many Norwegians feel embarrassed to support companies that believe they are relying on repealing the CEO who says they have abandoned the principles of democracy.
Andrea Frescu's Tesla is secured in a thick layer of winter grime. She said it reflects her ambivalence with the vehicle she and her husband rented out for 10 years in 2019.
After Musk bought social media company Twitter, she began to feel more and more embarrassed about owning Tesla, but that got worse after Musk regularly existed in the Trump administration.
“It's become really difficult to protect this car since then,” said Fresk, a psychologist at Public Family Services in Norway.
Some of her friends are already selling their Teslas, she said. However, she and her husband are still paying back the car and it's running smoothly, so she hasn't traded it for now.
Norway's largest used car dealer, Rebil has seen an increase in the number of drivers selling Teslas in recent months. However, that meant the prices were low and despite the “Tesla's shame”, sales were active.
“We had a lot of customers worried about Tesla,” said William Oestby, a salesman at Rebil. But when he quizzes them with the price, range, size and hauling ability they are looking for, he said Tesla is the best deal normally offered. “It's hard to find something to compare,” he said.
That may change soon. Over the next two years, Ford Motor, BMW, Mercedes-Benz and other automakers will be introducing the next generation of electric vehicles. Some of these cars will be on sale by the end of this year, but they will incorporate advances in battery technology that will allow for greater driving range and faster charging. These automakers say their cars are better than what Tesla offers.
Traditional automakers “everything is moving forward,” said Roberts of Rho Motion. “Previously, consumers may have struggled to find other options
Tesla really competed. it's not. ”
Anusha Baiya Contributed report from New York Henrik Pryser Libell From Oslo.
