Tesla Motors Inc: Norwegians Love It More Than Americans

Norwegians seem to love Tesla Motors Inc more than Americans. Since launching its Model S sedan in Norway in 2013, Tesla has sold about 6,000 units in the country. That means Model S accounts for 3% of all automobile sales in Norway. By comparison, Tesla had a meager 0.2% market share in the U.S. over the same period, according to CNNMoney.

Tesla Motors Inc: Norwegians Love It More Than Americans

EVs account for 10% of car sales in Norway

Electric vehicles, including Tesla Model S and Nissan Leaf, have enjoyed huge success in Norway. Government in the oil-rich European nation offers a lot of incentives that make even high-end electric vehicles seem like bargain. Electric vehicles are spared the steep sales taxes in the country. Norwegian electric vehicle owners also get other perks including free charging at stations, free parking, exemption from toll taxes and use bus lanes.

On the other hand, the government levies large taxes on those buying gas-guzzlers. Frederic Hauge, a Tesla owner in Oslo, told CNNMoney that his Model S sedan had rubbed on his neighbors. Hauge said that some Norwegian people buy Tesla vehicles because they feel a sense of guilt about exploitation of the country’s oil resources. Electric vehicles account for more than 10% of all new car sales in the country.

Incentives make Tesla look like a bargain

Model S boasts of acceleration from 0-60 mph in just 5.4 seconds and top speed of 125 mph. Its 300-mile range far outstrips other electric vehicles. A new Model S costs approximately $110,000 in Norway, compared to about $70,000 in the United States. But generous incentives make Tesla look like a bargain. So, migration to electric cars makes sense in Norway.

Euromonitor International analyst Neil King says that electric cars are far more popular in Norway than in major markets such as the U.S., UK and China, where they are still struggling to gain even 1% market share. Tesla has been expanding aggressively in international markets. The company launched right-hand drive version of Model S in the UK in May this year. Earlier this month, Tesla started delivering Model S in Australia.

Shares of the Palo Alto-based company inched up 0.36% to $223.40 in pre-market trading Tuesday.

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