Tesla Model S snow

Norway is a very important market for Tesla. It’s the automaker’s biggest in Europe and about 8% of its total worldwide deliveries last year. In 2015, Tesla had flat deliveries in the country after delivering the exact same number, 4,039 Model S units, two years in a row, based on registration data.

It is still impressive for a relatively small country – though with a lot of EV incentives – but Tesla is definitely not growing in Norway anymore, or at least for the time being.

Now Tesla is off to a rough start this year. The California-based automaker delivered 705 Model S units during the first quarter 2016 versus 1,532 units during the same period last year, according to registration data.

It represents a decrease of about 54%.

It’s possible that Tesla’s Model X production ramp up is affecting its deliveries in countries where the automaker is not fulfilling Model X orders just yet – namely everywhere but the US.

Here’s a chart of Tesla monthly Model S deliveries in Norway since 2014:

Model S norway q1 2016In 2015, Tesla was also off to a rough start during the first quarter versus the same period in 2014, but ended up catching up during each subsequent quarter and finishing the year flat. At first glance, it might be more difficult to achieve this year, but once Tesla starts the European Model X deliveries later in 2016, it should be easier to achieve bigger delivery numbers.

The Model 3 unveiling could also be affecting Model S sales. Tesla has now over 276,000 Model 3 reservations and even though the vehicles are in two different segments, it would be safe to assume some potential buyers are overlapping between the two segments.

Tesla is expected to remedy the situation by updating the Model S soon.

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Fred Lambert

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