On Monday morning, Tesla (TSLA, Financial) stock prices dropped 7% due to its market share decrease in Sweden and Norway. Tesla's car population remained low in the two Nordic countries while general vehicle registrations continued to grow, according to registration statistics.
The registration numbers for Teslas in Sweden dropped by 44% in January 2025 as the market recorded only 405 vehicles compared to the previous year. The number of Tesla car registrations in Norway decreased by 38% in annual comparison reaching 689 units. The Model Y SUV from Tesla managed to become the top-selling vehicle in both countries during 2024 yet the market share has declined.
According to a sentiment survey conducted by Novus Group for the Sweden market the brand received increasingly negative feedback from consumers. Experts believe Tesla's reputation among the public decreased in recent times due to the controversial political remarks from CEO Elon Musk. Former U.S. President Donald Trump has gained strong backing from Musk who has likewise generated global political backlash that European leaders particularly the Norwegian prime minister have criticized.
Tesla's battle for success in Nordic markets demonstrates the business threats Tesla encounters while tackling both expanding market competition and intensifying political divisions between countries. The company needs to restore customer confidence in its core markets to successfully defend against possible loss of market leadership.
