Tesla sales surge in Norway but continue to face headwinds across Europe

Thanks to zero-interest loans and the country’s embrace of alternative fuel vehicles, Tesla’s sales in Norway increased by 213% in May year-over-year to 2,600 vehicles with the newly revamped Model Y accounting for the majority sold.

The widespread adoption of EVs in the country may be attributed to incentives such as free parking for EVs, toll road discounts, and access to bus lanes. According to data from the Norwegian Road Federation cited by Reuters, nine out of ten cars sold in Norway were fully electric.

The EV maker hasn’t fared quite so well across the rest of Europe with sales in Sweden down 53.7% in May YoY, down 67% in France, down 68% in Portugal, -30.5% in Denmark, -36% in the Netherlands, and -19% in Spain.

According to the most recent data from the European Automobile Manufacturers’ Association for April, Tesla sales in Europe were down 53% to 5,475 vehicles while overall vehicle registrations in April were up 1.3% year-over-year (when including the UK, Iceland, Liechtenstein, Norway, and Switzerland, Tesla sales were down 49% to 7,261).

Although the controversy surrounding CEO Elon Musk is often cited for the sluggish sales, the company also faces stiff competition from cheaper Chinese rivals, as well as a shortage of Tesla’s (NASDAQ:TSLA) most popular Model Y early this year while the vehicle underwent a design remodel. During the first quarter of 2025, sales of Tesla’s (NASDAQ:TSLA) Model Y fell to just 360 versus 3,274 during Q4 of 2024.