Tesla faces declining sales in Scandinavia amid shifts in brand perception

Tesla’s market performance in Scandinavia has experienced a notable downturn, with registration data from February showing a significant decline compared to the previous year.

In Sweden, new Tesla registrations dropped by 42% year-on-year, while both Norway and Denmark saw decreases of 48%, despite an overall increase in auto and electric vehicle demand in these countries.

In Norway—where nearly all new vehicles are electric—Tesla’s share of total car sales has fallen to 8.8% year-to-date, down from 18.9% recorded in 2024 and 20% in 2023. Industry observers note that this decline coincides with increasing competition from rivals such as Volkswagen and Toyota, which have introduced newer model lineups that appear to be capturing consumer interest.

Analysts suggest that Tesla’s challenges may be compounded by broader concerns over brand perception. CEO Elon Musk’s political activities, including his involvement in U.S. political affairs, federal workforce cuts, and comments perceived as aligning with far-right views in Europe, have sparked demonstrations and calls for boycotts. Some prospective buyers, according to the Danish Federation of Motorists, have indicated a willingness to consider alternatives to Tesla amid what they describe as a growing trend in “political consumerism.”

The company is also facing scrutiny over its vehicle lineup. Observers point to an ageing range of models as a potential factor in the current sales decline. Tesla is preparing to introduce an upgraded version of its Model Y mid-size SUV in Europe—the best-selling car in the region over the past two years—but it remains to be seen whether this new iteration will help the company regain market share. Initial assessments of the impact are expected between March and June, with possible adjustments in pricing strategy also under consideration.

A Tesla spokesperson did not immediately respond to requests for comment regarding the recent sales figures and market trends.

As competition intensifies and brand loyalty is tested, the coming months will be critical in determining whether Tesla can reverse its declining momentum in the Scandinavian market.

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