Norwegian buyers "immune" to Musk's political controversy boost Tesla, Inc. (TSLA.US) sales in Norway by 24% in the first half of the year.

Tesla, Inc. (TSLA.US) has had a poor sales performance in Europe this year, as the political stance of the company's CEO Musk has sparked consumer dissatisfaction, leading to acts of vandalism against Tesla, Inc. electric cars and dealerships in some places, and prompting some formerly loyal customers to move away from the brand. However, Norway is an exception, as the sales of Tesla, Inc. electric cars in this Nordic country have seen a significant increase - at least for now. Data shows that in the first half of this year, Tesla, Inc. sales in Germany, Sweden, Denmark, and the Netherlands plummeted by half or more compared to the same period last year, but sales in Norway increased by 24%, making this country of only 5.5 million inhabitants the second largest market for Tesla, Inc. in Europe. Based on interviews with Tesla, Inc. owners in Norway and industry experts in the electric car sector, the relationship between Tesla, Inc. and this Nordic country, which has lasted for 12 years - despite some recent signs of tension - has still nurtured brand loyalty and to some extent shielded the brand from external negative influences. Secretary-General of the Norwegian Electric Vehicle Association, Christina Bu, said: "In a way, you could say that Norway helped make Tesla, Inc. what it is. In Norway, everyone knows someone who owns a Tesla, Inc. This is a more personal relationship." Although the Norwegian market is small - Tesla, Inc. sales in Norway accounted for less than 12% of European sales in the first half of this year, and only contributed a small fraction of the company's global revenue - Norway holds important symbolic significance for the Tesla, Inc. brand. In 2013, Norway became the first country outside North America to receive Tesla, Inc.'s flagship electric car Model S. Tesla, Inc. established its first supercharging network outside North America in Norway, promising new customers with a vast network of fast-charging stations. In 2021, Tesla, Inc. became the top-selling car brand in Norway, with its share of new car registrations ranging between 11% and 20% over the past five years. Tesla, Inc. also helped Norway become the country with the highest rate of electric vehicle adoption globally, with electric cars now accounting for 94% of new car sales in the country. In return, Norway provided a global stage for Tesla, Inc. to showcase its technology, and Musk also praised the Norwegian government's electric car subsidy policies. However, Tesla, Inc.'s dominance is now facing challenges. Volkswagen briefly took the top spot in sales in the first quarter of this year, and Volvo's electric models have quickly gained popularity among Norwegian consumers. Meanwhile, Chinese car companies such as BYD Company Limited, Xpeng, and MG brand under SAIC Motor Corporation collectively captured a 12.3% market share in new car sales in June this year. For Tesla, Inc., the key question is whether Norwegian brand loyalty will continue. A survey conducted by polling firm Norstat in February showed that 40% of Norwegian Tesla, Inc. owners believe Musk's political actions are damaging the brand, but more than half of the owners stated they intend to purchase a Tesla, Inc. again. Currently, Tesla, Inc. has successfully defended its dominant position in Norway against increasing threats and has overcome public disappointment with Musk. Despite a 4% decline in new registrations for Tesla, Inc. in Norway last year, and sluggish sales in the first few months of 2025, Norwegian consumers quickly bought up the refreshed Model Y launched by Tesla, Inc. in March, as well as the lower-priced version introduced in May. Oyvind Solberg Thorsen, head of the Norwegian Road Federation (OFV), said: "For Norwegian buyers, vehicles that are user-friendly, meet their needs, and are affordable are more important than facing the 'Tesla, Inc. shame'." It is reported that Tesla, Inc. conducted a large-scale promotion in May, offering zero-rate financing and free supercharging, which likely led to a 213% surge in new car registrations for Tesla, Inc. in Norway. However, the same promotional activities did not yield the same results in neighboring Nordic countries Sweden and Denmark. According to OFV data, in July of this year, no Tesla, Inc. models entered the top ten in sales in these two countries.