If Tesla (TSLA) chief executive Elon Musk wants to get away from it all this summer – Norway could be a good choice to make.
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Despite faltering sales of his electric vehicles elsewhere in the world, Norway is the outlier with demand on the rise.
Norwegian Good
According to a Reuters article, in the first half of this year as Tesla sales plunged by half or more in Germany, Sweden, Denmark and the Netherlands, they grew by 24% year-on-year in Norway, making the country of 5.5 million the company’s second-largest European market.
Tesla’s sales and deliveries in most nations have been hit by increasing competition from Chinese rivals, question marks are raised over the allure of its vehicle designs and of course Musk’s involvement in the Trump administration and flirtation with right-wing politics.
It has led to Tesla cars being burnt and vandalised and the once formidable share price hike beginning to flounder.
But the Norwegians seem more forgiving and could signal the possibility that Tesla can win back the hearts and minds of customers elsewhere.
“I did think a bit around all that’s going on with the company and the brand,” said one Norwegian Tesla driver talking to Reuters. “But it’s really all about the charging infrastructure and the seamless technology of the car. No one comes even close.”
Close Relations
Norwegians are particularly keen on Tesla’s refreshed Model Y SUV, which first came out in March, as well as a lower-priced version released in May.
Though small – its market represented less than 12% of Tesla’s European sales in the first half of the year – Norway holds symbolic importance for the brand.
It was the first country outside of North America to receive Tesla’s flagship EV, the Model S, in 2013. Tesla also has an emotional bond with Norway, which experts also said might be softening the Musk mayhem blows.
“In many ways, you could say Norway helped build Tesla,” said Christina Bu, secretary general of the Norwegian EV Association. “Everyone in Norway knows someone who owns a Tesla. It’s more personal.”
Musk will be hoping the personal touch extends further in the months ahead but vehicle sales are not the only thing keeping Tesla on the straight and narrow.
Its wide range of offerings from humanoid robots, to robotaxis and energy storage is, some analysts say, driving the group to a $10 trillion valuation by the end of the decade.
Is TSLA a Good Stock to Buy Now?
On TipRanks, TSLA has a Hold consensus based on 14 Buy, 15 Hold and 8 Sell ratings. Its highest price target is $500. TSLA stock’s consensus price target is $307.23, implying a 7.32% downside.
