Tesla Faces Market Turbulence in Sweden and Norway: A Political Repercussion?

Tesla saw a significant decline in car registrations in Sweden and Norway in January, coinciding with criticism directed at CEO Elon Musk over his political involvement. Despite overall car market growth in these regions, public sentiment towards Tesla has worsened, as observed in recent surveys.

Tesla experienced a marked drop in market share in both Sweden and Norway this past January, reflecting the latest car registration data. This decline comes as CEO Elon Musk's political involvement draws scrutiny, impacting the brand's reputation and testing its popularity among consumers.

Although Tesla's Model Y topped sales in the Nordic region in 2024, its image has come under pressure. A survey by Sweden's Novus Group indicates a shift in public sentiment, following Musk's vocal support for former President Donald Trump and controversial political opinions, which have drawn criticism in Europe.

In Sweden, the percentage of people viewing Tesla favorably fell to 11% after Trump's inauguration. Meanwhile, Tesla's market share in Swedish and Norwegian car markets halved, despite rising auto sales driven by economic optimism, highlighting how consumer perceptions can impact business performance.

(With inputs from agencies.)