Tesla sells dip in Norway, losing EV crown

Tesla’s Norway Surge & European Decline: A Market Crossroads

In May 2025, the EV spotlight fell on Norway—an outlier in Tesla’s faltering European performance. Tesla’s deliveries in Norway jumped 213 %, rising from roughly 832 units in May 2024 to 2,600 vehicles—anchored by the revamped Model Y appeal and favorable financing offers.

Yet that sharp spike tells a more nuanced story: it stems partly from a low baseline in May 2024, which inflates the year-on-year percentage change. In absolute terms, 2,600 EVs represent progress, but given the context of Tesla’s broader slump, the figure is less dramatic than it appears.

⚠️ Europe-Wide Slump: Why Tesla Is Losing Ground

Tesla’s struggles aren’t confined to Norway—or even Europe; they’re systemic. In Germany, May sales dropped 36 %, while France, Sweden, Denmark, UK, Italy, and Portugal also reported double-digit– to – triple-digit declines . The crux lies in several converging factors:

1. Ageing product line – Tesla continues to rely heavily on just the Model 3 and Model Y, both due for refreshes. Meanwhile, rivals like BYD, Skoda, Polestar, and Volkswagen are rolling out updated EVs.

2. CEO political backlash – Elon Musk’s political affiliations—particularly with far-right movements—have stirred consumer resistance, especially in Europe. Public distrust has translated to declining registrations.

3. Factory and supply issues – Delayed renovations and retooling of Model Y plants in Berlin and Texas have affected availability, further weakening sales momentum.

4. Intensified competition – Chinese makers like BYD now offer EVs that lead in tech and competitive pricing. Indeed, BYD overtook Tesla in European sales earlier this year.

Norway: Still an EV Showcase

Despite these headwinds, Norway remains a Tesla stronghold—but with shifting dynamics:

• Market saturation: Norway leads globally in EV penetration—over 92 % of new car registrations are electric. Tesla remains a key player, but its overall market share trends behind competitors like Volkswagen, at about 12.9 % YTD.

• Incentives & timing: Sales climbed after Tesla introduced 0 % financing and pushed the new Model Y. Norwegians responded to low interest rates and familiarity with Tesla’s platform.

• Culture vs. leadership: Even though Elon Musk’s actions draw criticism in Europe, most Norwegian EV buyers remain pragmatic. According to a Rebil analyst, “ultimately, it’s the price that Norwegian motorists care about most… Norwegians don’t like Musk but feel no shame owning a Tesla”.

Market Realities & What Comes Next

Challenge	Potential Turnaround	Risk
Overreliance on Model 3/Y	Launch of refreshed Model Y spreads across Europe in June–July	Refresh may not offset long-term product fatigue
Lingering political drag	Musk steps back from political activities to refocus	Damage to brand reputation can take years to reverse
Intense competitive pressure	Improved financing, regional promotions (e.g., 0 % loans)	Deep-pocketed incumbents keep pushing prices down
EV market growth (Norway: +30 % YTD)	Tesla benefiting from general EV tailwinds

A critical question remains: Can Tesla pivot fast enough in Europe? The Model Y refresh rollout is scheduled across major markets this summer, which could ignite growth—if executed well. But without a broader lineup update—especially a more affordable compact EV—they risk trailing.

Final Take

Tesla’s 213 % surge in Norway highlights how big the swing can be in a single month—but is amplified by low comparators and aided by targeted incentives. Meanwhile, elsewhere in Europe, the message is unmistakable: an aging product line, rocky brand image, and escalating competition are cumulatively costing Tesla its EV crown.

For Norway, the EV arena is saturated but still vivid. Tesla remains relevant, yet now indexes on price, performance, and promotion, less so on brand mystique. Their true test will come when these short-term advantages—like zero-interest offers—dissipate and must stand alongside improved lineup and renewed consumer trust.

If Tesla is to regain Europe’s leadership, this summer’s refresh must deliver—and fast. Otherwise, markets like China’s BYD, Germany’s VW, and the newly energized EU EV scene could eclipse them beyond recall.