If there's one place Tesla should thrive, it's Norway. Electric vehicles make up more than 90% of new car sales in the Scandinavian country, and buyers here are among the most savvy in the world when it comes to understanding the intricacies of batteries, charging and range, the New York Times reported.
So there's hardly a worse omen for Tesla than the fact that its sales in Norway are down more than 12% so far this year. Sales for the first three months of the year were even worse in Denmark, France, the Netherlands and Sweden.
In fact, Tesla's sales are on a steep downward trend worldwide: the company reported that its global sales in the first quarter were down 13% from a year earlier.
The company said it delivered nearly 337,000 vehicles in the quarter, down from 387,000 in the first three months of 2024. The weak sales reflect a number of serious issues at the company, not least the consumer backlash against the important role CEO Elon Musk is playing in the Trump administration.
Geir Rognlien Elgwin, an urban planner in the city of Oslo, bought his first Tesla in 2013, months after their introduction in Norway. He toured the company's battery factory in Nevada. He met Musk when the CEO was still best known for wanting to tackle climate change with electric cars and his rocket company SpaceX.
But when Musk turned to right-wing politics, Elgwin's enthusiasm waned. And he began to worry about the company's data security policies.
A few months ago, he traded in his Tesla for a battery-powered bicycle and an electric Volkswagen. "I'll never drive a Tesla again," says Elgwin. "It's a question of ethics."
Last year, Tesla accounted for almost a quarter of Norway's car sales, far more than any other automaker. But in the first two months of this year, Musk's company slipped to third place behind Volkswagen and Toyota. Tesla accounted for just 9% of new car sales, less than half its market share a year earlier.
For Tesla, the decline in the world's most advanced electric car market is ominous and signals trouble ahead in other areas.
"Norway is always a good place to look into the future," says Will Roberts, who tracks electric vehicles at research company Rho Motion.
There are several explanations for Tesla's sales decline. Almost all of the company's sales depend on two models - the Model Y sports car and the Model 3 sedan. The Cybertruck pickup truck, the company's newest and most polarizing model, has been dogged by recalls and isn't selling as well as Musk predicted.
Tesla once set the standards for battery range, software and driver-assist technologies. But traditional automakers have become more adept at creating electric vehicles and have begun to catch up to Tesla in terms of technology. Competitors such as Volkswagen, Volvo, Beem We - and outside the United States, BYD, Xpeng and other Chinese manufacturers - offer a diverse selection of luxury sedans, minivans, pickup trucks and compact cars.
"Tesla has been alone in Europe and the U.S. for almost all these years," says Felipe Muñoz, global analyst at research firm JATO Dynamics. "That's no longer the case."
Part of the sales decline may be due to buyers waiting for an improved version of the Model Y, analysts say. Deliveries of that version began in March in Norway, which may explain why the company's sales last month were down just 1% from March 2024.
Munoz pointed out that sales of the Model 3, which was updated in 2023, were also down, though not by as much.
In February, registrations in Europe of the older Model Y were down 56%, while Model 3 registrations were down 14%, according to JATO. The decline occurred even though overall EV sales in Europe jumped 25%.
Musk's support for right-wing parties in Europe and his closeness to President Trump have not helped Tesla's image. The billionaire has been at the centre of protests in the US and Europe, and his activities have alienated some customers. Electric car buyers in most countries lean to the left politically.
In Sweden, Folksam, the country's largest insurer, said it had sold its stake in the U.S. automaker because Tesla's approach to employee rights violated the company's investment criteria. Folksam had invested in Tesla since 2013 and its stake was worth 1.6 billion Swedish kronor, or $160 million.
Many investors are concerned about the company's prospects. Tesla's share price, down more than 40 percent from its December high, fell about 4 percent in early trading on April 2.
Machinists from the IF Metall union have been on strike in Sweden for more than a year over Tesla's refusal to sign a collective agreement.
Many Norwegians are ashamed to support a company that they say has reneged on its commitment to make personal transport better for the planet and whose CEO they say has abandoned the principles of democracy. | BGNES
