Tesla once again tops the sales charts in Norway. What is happening?
On Friday, May 30, Elon Musk stepped down as Trump's close adviser and proponent of the Doge project. Will this help Tesla sales in the EU, which have drastically declined over the past year?(Photo: Evan Vucci / NTB)
Tesla sales in Europe have suffered due to Musk's political career. The decline was over 52 per cent compared to April last year, according to The Guardian.
People are instead buying other electric cars, such as those from Volkswagen, BMW, Renault, and the Chinese brand BYD, according to the Norwegian news agency NTB.
In Norway, it's different.
Here, fewer Teslas were also sold after Trump became president in January. But something happened in May.
Now, Tesla is at the top of the sales statistics and has overtaken Volkswagen as the most sold brand in Norway. Tesla alone accounts for nearly one-fifth of new car sales in Norway.
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This is drawing international curiosity. The American TV channel CNBC questions why Tesla sales are increasing in Norway, but not in Europe.
Do Norwegians no longer care that Tesla is owned by the controversial Musk?
The product is what matters most
There are many factors at play here, according to Pål Silseth, a lecturer at BI Norwegian Business School.
He explains that Norwegians typically do not let a company’s damaged reputation influence their purchasing decisions.
Norwegians are mostly concerned with the product or service itself.
This is backed by years of data from the BI Customer Barometer, which tracks consumer satisfaction and loyalty in Norway.
"Most people probably think mainly about price, the car's features, and the brand's appeal," says Silseth.
High prices affect sales
Silseth points to another reason Norwegians buy Teslas: the interest-free financing.
Tesla is currently offering a three-year zero-interest deal for new buyers.
"With this offer, Tesla appears to be good value for money for many consumers," says Silseth.
He adds that many Norwegians have delayed buying cars in recent years due to lower purchasing power. Interest rates in Norway have yet to come down.
"This kind of offer attracts buyers who are price-conscious or have tighter budgets," he says.
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What's different about Norway?
"Do Norwegian customers not feel any Tesla shame?"
"Some of us do," answers Silseth.
But he questions how widespread it really is.
In this year's Customer Barometer, 20 per cent of those who had bought a Tesla in the last two years said they would not buy one again. That survey was conducted during the peak of the controversy surrounding Elon Musk, Silseth notes.
"The media made it seem like Tesla shame was everywhere. But how representative were those stories of the broader public?” he asks.
Silseth compares it to flight shame, which also received a lot of attention for a while. But how many people actually stopped flying?
Pål Silseth is head of the Norwegian Customer Barometer and a lecturer at BI Norwegian Business School.(Photo: BI)
"Of course, there are parts of the population who strongly value ethical principles and make choices accordingly, but for most people, that's probably not the most important factor," he says.
Norway's unique EV market
Are Norwegian consumers fundamentally different from those in other countries?
"Possibly. I think we also have to consider that Norway has a very different electric vehicle market compared to other countries," he says.
That makes international comparisons tricky.
Electric vehicles make up a much larger share of Norway’s car market than elsewhere. A staggering 94 per cent of all new cars sold are electric.
"In Norway, Tesla has become an established and popular car brand with a high market share, while in the rest of Europe they're more marginal and make up a small part of the car market," says Silseth, adding:
"If you drive a Tesla in the EU, you probably stand out. In Norway, you don't."
Tesla Model Y tops the May sales chart despite Elon Musk controversies.(Photo: Ståle Frydenlund, the Norwegian Electric Vehicle Association)
Reputation still matters to many
Silseth admits he was surprised when 20 per cent of respondents in the Customer Barometer survey said they would not buy a Tesla again.
"I expected some reaction, but not one so strong," says Silseth.
In an annual survey by Norwegian newspaper Elbilisten, 63 per cent said there are certain car brands or countries they would not buy from for political reasons. 43 per cent named Tesla as one of those brands.
"Even though Tesla continues to sell many cars in Norway, the Elbilisten survey clearly shows how Elon Musk's political activities negatively affect Tesla," Christina Bu, Secretary General of the Norwegian EV Association, says in a press release (link in Norwegian).
Silseth believes that without Musk's politics, Tesla would have had even higher sales so far this year.
"But if Musk is truly done with politics and Tesla can regain attention for its products, I think this issue will have little long-term impact, also in Europe. I’d say a potential trade war between the EU and the US might have a greater impact on sales and market share for American car brands," he says.
