Tesla’s sales are collapsing in Europe — but not in this country

Elon Musk’s nightmare across most of Europe is showing no sign of ending, but in EV-mad Norway, Tesla is thriving.

The Scandinavian nation is one of the first countries to have almost completely transitioned to electric vehicles, with battery-powered vehicles making up 97% of Norway’s new car sales in August.

Tesla is reaping the rewards of Norway’s EV obsession. The US automaker is the top-selling car brand of any kind in the country this year, and saw its sales surge nearly 22% year-over-year in August, according to data from the Norwegian Road Federation.

Tesla’s success in Norway is a ray of light in an overall gloomy picture in Europe. The company’s sales have plunged this year amid growing EV competition, a stale product lineup, and public backlash over CEO Elon Musk’s political interventions.

Tesla’s sales in Europe were down 40% year-over-year in July, according to data from the European Automobile Manufacturers Association (ACEA), while new registrations fell 47% in France and 84% in Sweden in August.

In addition to Norway, Tesla saw sales rise in Spain and Portugal last month. Musk has denied that Tesla is struggling in Europe, but the company is facing pressure from an influx of Chinese carmakers like BYD, which have rapidly gained market share with a range of affordable electric models.

BYD has seen its sales surge in Europe so far this year, and the Chinese firm outsold Tesla in July for the second time in six months.

BYD’s EVs and hybrids are also proving popular in Norway’s EV utopia, with the company’s sales rising nearly 150% year-over-year in August.

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