logo
Norway's Tesla obsession defies Europe's Musk backlash

Norway's Tesla obsession defies Europe's Musk backlash

CNBC11-07-2025
OSLO, Norway — Tesla continues to find solace in Norway, defying a sustained European slump amid a backlash over CEO Elon Musk's incendiary political rhetoric.
The U.S. electric vehicle maker recorded a 54% year-on-year jump in new car sales in Norway in June, according to data from the Norwegian Road Federation (OFV), fueled by a 115.3% yearly increase in registrations for its revamped Model Y sports utility vehicle.
The data backed up a whopping 213% increase in new car sales in May and shored up Tesla's dominant position in the world's most EV-friendly country.
Christina Bu, secretary general of the Norwegian EV Association (NEVA), which represents electric car owners in the country, said Tesla has been well established in Norway for several years — but the popularity of its upgraded Model Y is "definitely part of the reason" for its recent sales boost.
"In general terms, I think it just has to do with the fact that they deliver a car which has quite a lot of value for money and is what Norwegians need," Bu told CNBC during an interview at NEVA's office in Oslo.
The Tesla Model Y appears to be especially popular in Norway because of its competitive price and the fact that it meets local demand for large luggage space, high-ground clearance, all-wheel drive and a tow hitch, Bu said.
Sales data from southern Europe signaled some further green shoots for Musk's company, with Tesla new car registrations last month increasing by 61% in Spain and around 7% in Portugal.
The story remains very different across the rest of Europe, however. Tesla sales in Germany, Europe's largest automotive hub, dropped by 60% in June from a year earlier, while sales also dipped in France.
Separate data from the European Automobile Manufacturers Association, or ACEA, found Tesla's new car sales in Europe fell for a fifth straight month in May.
Tesla's brand value has been declining since 2024 in part because of Musk's political activity.
The Tesla CEO, who spent nearly $300 million to support Donald Trump's election campaign, recently left the White House after leading an initiative to slash federal agencies. Protests erupted at Tesla dealerships across Europe in response to Musk's role in the Trump administration.
Musk's departure from the White House in late May was followed by an extraordinary war of words with Trump. The world's richest man also formally endorsed Germany's far-right party AfD ahead of the country's parliamentary elections earlier this year, triggering an outcry in Berlin.
NEVA's Bu told CNBC that Musk's political activity hadn't gone unnoticed in Norway, with a recent annual survey of more than 15,000 EV drivers finding that 43% of respondents said they would not buy a Tesla for political reasons.
"So, this has definitely been a big debate in Norway as well. What Elon Musk has been saying and doing the last year or so — so it definitely affects people, but not too many because their market share is remarkable really," Bu said.
For its part, Norway has long been recognized as a global leader in sustainable transportation. Indeed, it is currently on track to become the first country in the world to effectively erase gasoline and diesel cars from its new car market.
Lawmakers and analysts have attributed the country's shift away from internal combustion engine (ICE) vehicles to long-term and consistent policies designed to support the uptake of EVs.
"I think it's a combination of several things, but it is policymaking that has driven this forward," Norway's Deputy Transport Minister Cecilie Knibe Kroglund told CNBC in Oslo.
"We have a lot of incentives, both tax incentives and user incentives are the most important things and also infrastructure, of course. But policymaking and incentives are the main tools that we have been using," she added.
Some of Norway's EV incentives include a VAT exemption, discounts on road and parking taxes and access to bus lanes. The government has also heavily invested in public charging infrastructure, and many Norwegian households are able to charge their cars at home.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

SL Green stock could climb if Fed starts cutting rates, Jim Cramer says
SL Green stock could climb if Fed starts cutting rates, Jim Cramer says

CNBC

time27 minutes ago

  • CNBC

SL Green stock could climb if Fed starts cutting rates, Jim Cramer says

CNBC's Jim Cramer on Wednesday told investors he likes real estate investment trust SL Green Realty and said its stock could see gains if the Federal Reserve starts cutting interest rates. "In the short term, SL Green's stock will remain hostage to factors outside of the company's control like the direction of interest rates," he said. "But after this quarter, I really believe that the core business is in good shape, the 5.1% dividend yield is safe, and the stock could be a winner once the Fed starts cutting rates again." Wall Street didn't react well to SL Green's most recent quarterly earnings. Even though the company, which is a major player in the Manhattan commercial real estate market, beat estimates and raised guidance, the stock still fell and is currently down more than 11% year-to-date. According to Cramer, some investors believed the quarter wasn't as strong as it seemed on the surface. They attributed the results in large part to a successful investment profit, he said, dismissing the one-time benefit. Analysts were also dissatisfied with "some mixed operating metrics," he said. But Cramer said he doesn't think it makes sense to write off SL Green's investment profit, because it is part of business. The company's knowledge of the Manhattan real estate market and its ability to "make smart bets on properties in its focus areas" bodes well, he continued. The real estate business can be inherently unpredictable, Cramer indicated, and he said he's not worried that SL Green would have likely reported a miss without the deal. Cramer said the company's leasing activity appears strong, and he noted that management said there are potential tenants in the pipeline from a variety of sectors. Cramer also remarked SL Green was executing a fair amount of mid-sized deals, saying that this means the company has a "steady deal flow" and isn't relying on the success of a few major contracts. Cramer added that SL Green's long-term opportunities look promising, aside from the company's attempt to bring a casino to Times Square. He said he doesn't know if SL Green can win that business. "I'm just talking structural factors here, like the fact that there's minimal new supply of office buildings in New York these days, and SL Green dominates in class A office properties, which remains the strongest part of the market," he said. SL Green did not immediately respond to request for comment. Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store