Arizona Tribune - In contrast to Europe, Tesla sets sales records in Norway

In a country ahead of the pack in the adoption of electric vehicles, Tesla sales have surged by 34.6 percent since the beginning of the year, compared to the same period last year, according to the Norwegian Road Federation (OFV).

Tesla's Model Y and Model 3 were the two best-selling vehicles last month across all brands.

By comparison, its sales in the European Union -- of which Norway is not a member -- dropped by 39.2 percent in the first 10 months of the year, and by 48 percent year-on-year in October, according to the latest statistics from the European Automobile Manufacturers' Association (ACEA).

Tesla is facing increased competition from attractively priced Chinese brands and has also suffered from a tarnished image owing to controversies surrounding its billionaire CEO Elon Musk.

Around 41 percent of electric car drivers worldwide would avoid owning a Tesla for political reasons, according to a survey published by the Global EV Alliance in November.

The head of the Norwegian Road Federation told AFP that "there is no sign of 'Tesla shame' in Norway."

Geir Inge Stokke said "Norwegian drivers prefer reasonably-priced quality cars that are technologically advanced and in which they feel safe."

In Norway Tesla has sold nearly 29,000 cars since January, surpassing the record of any brand for an entire year.

Norwegians are currently rushing to buy electric cars before a planned tightening of tax incentives for these vehicles, which are planned to start January 1.

In its proposed 2026 budget, the Labour government wants to lower the price threshold at which new electric vehicles are subject to VAT from 500,000 kroner ($49,000) currently to 300,000 kroner.

Then, the VAT exemption for electric vehicles would be abolished entirely by 2027.

VAT in Norway is set at 25 percent for cars.

As the Labour government only controls a minority in parliament, the proposal still needs to be approved by its partners in parliament before being passed.

"The uncertainty surrounding the proposed VAT change from 2026 is ... contributing to many people pushing their car purchases forward," the OFV's Stokke said earlier in a statement.

"With the budget still not finalised and the basis deduction still unclear, many choose to secure a new car under the current conditions," he added.

Fully electric vehicles accounted for 97.6 percent of new registrations last month in Norway, which had set the goal of achieving 100 percent zero-emission car sales as of this year.

M.O.Allen--AT