The Tesla model (L) of Oslo taxis and Nio ET5 electric car from Chinese multinational electric car manufacturer Nio Inc drove through Oslo, the capital of Norway, on September 27, 2024.
Jonathan Nackstrand | AFP | Getty Images
TeslaNew cars in Norway soared 213% in May sales, shocking the downward trend across Europe, according to official registration data.
Norwegian Road Federation (OFV) data showed on Monday that Tesla car sales in Norway jumped to 2,600 last month, a year ago, a year ago, a 832-year increase. This growth was driven primarily by the sales of the company's remodeled Y Model Y Compact Sport Utility vehicles.
European sales of U.S. electric vehicle (EV) manufacturers have suffered a sharp decline recently in the face of reputation losses, largely due to the inflammatory rhetoric and political activity of CEO Elon Musk.
Industry groups on Monday reported that new Tesla cars in Spain, Portugal, Denmark and Sweden saw a significant drop in sales.
Christina Bu, secretary general of the Norwegian Electric Vehicle Association (NEVA), which represents the country's electric vehicle owners, said the Tesla Model Y appears to be popular nationwide, pointing to the automaker's recent price activity.
"The Tesla Model Y-Share sells well and is popular in Norway, probably because it's worth the money and because it meets Norwegian demand for large luggage space, high ground clearance, all-wheel drive and trailer pairing," BU told CNBC via email.
But in a recent NEVA survey of more than 15,000 EV drivers, BU said that most respondents said politics does affect their choice of car brands.
"As of 43% say they won't buy Tesla for political reasons. So we can only speculate how much Tesla would be sold without Musk's support for the Maga movement and the Trump administration," Bu said.
Last week, the European Automobile Manufacturers Association (ACEA) reported that total sales of Tesla cars in Europe fell 49% in April, citing rising competition and brand losses.
Musk spent nearly $300 million in a campaign to re-election for U.S. President Donald Trump, who also led the Trump administration’s initiative to cut federal agencies. Protests broke out at Tesla dealers across Europe.
Rico Luman, senior transport economist at the Bank of Dutch Transport and Logistics, has the latest monthly car sales figures in Norway, noting that last month’s Dutch data also showed a month’s bounce.
"In Norway, Ev-Increntes still have a lot of opportunities available, which makes buying BEVs almost easy when possible. This is a general benefit, but it also helps this surge," Luman told CNBC via email.
Norway has long been recognized as the global leader in sustainable transportation and has now become the first country in the world to effectively erase petrol and diesel cars from its new car market.
Legislators and analysts have moved the country from internal combustion engine (ICE) vehicles to a long-term and consistent policy designed to support electric vehicle absorption.
Some of Norway's electric vehicle incentives include exemptions from VAT, road discounts and parking taxes, and access to bus lanes. The government also invests heavily in public charging infrastructure, and many Norwegian families are able to charge for cars at home.
The Tesla Model Y is on display in the Tesla pop-up store near Shiya intersection. In April 2025, Tesla opened a pop-up store in Shibuya, Tokyo, just a minute's walk from Shibuya Station.
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ING's Luman attributes Tesla's rebound in new car sales in Norway to the company's remodeled Y Model Y SUV, suggesting that the first delivery appears to be in May and more deliveries in June.
"It also shows that customers have delayed new Tesla orders to wait for a new version and explained some of the setbacks in the first few months of the year," he added.
Tesla continues to compete with traditional automakers and Chinese players. For example, it was recently discovered that the first pure electric vehicle sold by the automatic giant Byd in Europe, the first pure electric vehicle sold by Tesla.
Rella Suskin, a stock analyst at Morningstar, said there seems to be a strong correlation between market share of Chinese car brands in Europe and battery-electric vehicle adoption.
“In fact, Norway has the highest adoption rate, the highest share of Chinese vehicles that Russia does not include Russia. This may be related to the reception of Tesla in the region, as we can see, Suskin told CNBC via email.
- Arjun Kharpal of CNBC contributed to this report.