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Slowdown for Tesla in Norway, Sweden, Denmark

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February registrations down 42%-48% yr/yr in growing

market

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Pressure from European, Japanese rivals

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Tesla brand may suffer under CEO Elon Musk

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Revamped Model Y arriving in March

OSLO/COPENHAGEN, March 3 (Reuters) - Tesla's

Scandinavian sales fell sharply in February from a year ago,

eroding its market share as the electric vehicle maker faces a

test of brand loyalty amid CEO Elon Musk's role in U.S.

President Donald Trump's administration.

Tesla, whose cars topped sales charts in Norway, Sweden and

Denmark in 2023 and 2024, has slipped this year behind rivals

with newer model lineups such as Volkswagen and

Toyota ( TM ), registration data showed on Monday.

A total of 613 new Teslas were registered in Sweden last

month, down 42% year-on-year, while registrations in Norway and

Denmark each fell by 48% to 917 and 509 cars respectively,

despite rising overall auto demand in the three countries,

including for EVs.

Musk's entry into politics, leading sweeping cuts to the

U.S. federal workforce and endorsing far-right political views

in Europe, has triggered "Tesla Takedown" demonstrations in the

United States and calls for boycotts elsewhere.

The company did not immediately respond to a request for

comment.

In Norway, where almost all new cars are fully electric,

Tesla's share of overall car sales has slipped to 8.8%

year-to-date from a market-leading 18.9% for the full-year 2024

and 20% in 2023.

LOYALTY TEST

Held back also by an ageing vehicle lineup, the company

faces a test in the coming months as it prepares to introduce an

upgraded version in Europe of its Model Y mid-size SUV, the

Scandinavian region's best-selling car in the last two years.

But it was unclear if Tesla would recapture its former

position as the people's car of choice, the Norwegian Road

Federation (OFV), an industry group, said on Monday.

"The brand has had a unique market position in Norway for

several years. Whether that will continue is uncertain, because

there is a lot of unrest and noise around Tesla and Elon Musk,"

the OFV said in a statement.

In Denmark, a growing number of prospective buyers seeking

advice from the Danish Federation of Motorists (FDM) said they

were looking for alternatives to the Texas-based auto maker.

"A lot of people start by saying, 'I want to buy an electric

car, but I don't want it to be a Tesla'... The political consumer

has always been there, but it's more pronounced with Tesla now,"

FDM Chief Adviser Ilyas Dogru said.

Long-admired as a successful industrialist, Musk himself

appeared to have become the car brand's biggest enemy, said Atle

Falch Tuverud, the editor-in-chief of Norwegian auto trade

publication BilNytt.

"There is little doubt that Tesla has now lost some of its

existing customers, and it is absolutely certain that they have

lost some of their potential customers," Tuverud said, adding it

could take several months to fully assess the impact on sales.

An initial answer may come in the months from March to June

this year, when shipments begin of the redesigned Model Y, and

the company could also opt to compete more aggressively on

price, FDM's Dogru said.