Tesla sets sales records in Norway amid European struggles

Tesla has achieved unprecedented sales in Norway, selling more vehicles in 11 months than any brand in a full year, bucking a trend of declines across Europe. The surge comes as Norwegians rush to buy electric cars before upcoming tax changes. Officials note strong local preference for Tesla's models despite global controversies.

Statistics from the Norwegian Road Federation (OFV), published on Monday, show Tesla sold nearly 29,000 cars in Norway since January, surpassing the annual record of any brand. This represents a 34.6 percent increase compared to the same period last year. In November, Tesla's Model Y and Model 3 topped sales charts as the best-selling vehicles across all brands.

This contrasts sharply with the European Union, where Tesla sales fell 39.2 percent in the first 10 months and 48 percent year-on-year in October, per the European Automobile Manufacturers' Association (ACEA). Factors include competition from affordable Chinese brands and backlash against CEO Elon Musk's controversies. A November Global EV Alliance survey found 41 percent of electric car drivers worldwide would avoid Tesla for political reasons.

Yet in Norway, a leader in electric vehicle adoption, such issues have not dented enthusiasm. OFV head Geir Inge Stokke told AFP, "there is no sign of 'Tesla shame' in Norway." He added, "Norwegian drivers prefer reasonably-priced quality cars that are technologically advanced and in which they feel safe."

The boom is partly driven by urgency ahead of tax incentive changes. The Labour government's proposed 2026 budget would lower the VAT exemption threshold for electric vehicles from 500,000 kroner ($49,000) to 300,000 kroner, with full abolition by 2027. VAT stands at 25 percent. As the minority government needs parliamentary approval, uncertainty persists. Stokke noted, "The uncertainty surrounding the proposed VAT change from 2026 is contributing to many people pushing their car purchases forward." He explained, "With the budget still not finalised and the basis deduction still unclear, many choose to secure a new car under the current conditions."

Fully electric vehicles made up 97.6 percent of new registrations last month, aligning with Norway's goal of 100 percent zero-emission sales this year.

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