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Why Norway Loves the Tesla Model S
In January, Elon Musk made some controversial and critical remarks about hydrogen fuel cell cars when addressing a group of journalists during a Q&A session in Detroit. Musk’s comments were pertinent to my reading audience, so I published them as a blog post.
I then noticed something peculiar. The post had received hundreds of views from a single country: Norway. In fact, most of the views during a two-day period originated from this icy nation of only 5.1 million inhabitants.
Norway’s Best-Selling Car
During much of 2014, Tesla’s Model S was Norway’s best-selling vehicle. Not best selling electric car, but best-selling vehicle overall.
Sales of the Model S have gone gangbusters since its introduction in Norway. In the year and a half since its debut, in the country that’s famous for hosting the 1994 winter Olympics and being home to the popular Netflix show Lilyhammer starring Sopranos veteran Steven Van Zandt, the Model S has been setting records—and pleasing thousands of customers.
As reported by New York’s Daily News in April 2014, the Model S outsold Ford’s entire line of cars and sold double the number of Volkswagen Golfs, normally the number one seller in the snowy, narrow country that borders Sweden and Finland.
During the same period, the expensive Model S outsold the Nissan LEAF by a margin of three to one. Three to one. This goes counter to basic marketing dynamics, where more expensive products typically sell in lower quantities. Depending on battery configuration and options, the Model S is two to four times more expensive than the LEAF.
Satisfying Demand
It seem that the introduction of the Model S helped satisfy a pent up demand for performance-oriented electric cars in the Scandinavian country. As reported in the AID Newsletter (Automotive Industry Data) in September 2013, Elon Musk’s poster child for all things auto electric sold 184 units in its debut month of August 2013. It sold 322 units in September—besting the number two Volkswagen Golf, which sold only 256 cars. Not bad for right out of the gate (and in a nation of fewer than six million residents).
EV News Report, in a November 2014 article, reported that Norway’s goal to put 50,000 electric cars on the road by 2017 should be reached sometime in 2015. In the world of government initiatives, exceeding goals is almost unheard of.
In December 2014, CNNMoney published an article entitled Norwegians Love Tesla More Than Americans that spotlighted the fact that Tesla has sold more than 6,000 Model S sedans in the ironically oil-rich country. This is nearly 10% of the 61,000 all-electric sporty sedans sold globally since its introduction in 2012.
But why?
Part of the reason is simple economics. Norway’s government has offered steep incentives on battery electric vehicles to motivate its citizens to purchase zero emission cars. “Teslas and other electric vehicles are spared the steep sales taxes that can easily double the cost of a car,” reported CNNMoney last December.
Norway’s automotive sales tax can “double the cost of a car.” Imagine that you heard that Tesla was having a 50% off sale on the Model S. Would you be interested?
Norwegians are given additional incentives to jump on the electric car bandwagon, including the ability to travel in bus lanes, free parking, and no toll road charges (prices for which range from $0.65 to $20). For those who drive frequently and rack up the miles, especially for a five-days-a-week work commute, these are significant financial benefits and conveniences.
In Their Own Words
To learn more, I asked Norwegian owners themselves why they purchased a Model S. Most cited good value, inexpensive or free fuel (from home electricity or Tesla-supplied charging stations), exceptional driving range, and good handling in winter weather.
The Model S (in both 60 kWh and standard 85 kWh battery configuration) features a 48/52 front-to-rear weight distribution, making it a well-behaved rear-wheel-drive vehicle in rain or snow—critical in a northern climate like Norway. The top-shelf P85D, of course, features all-wheel-drive, making it even more adept in foul weather. “The total cost of ownership of my Tesla matches my previous car, a Toyota Prius. No fuel cost (not even electricity), no service, cheap insurance. Tesla is cheap compared to other cars in the same class,” said Marius Gromit Nedregård, an engineer living in Oslo (the nation’s capital and largest city).
Ståle Andreassen, who works for his father’s gas station in Bodø (“Oh the irony,” he told me during our interview), in the northern region of the country, said he purchased, “Because the Model S is basically competing against a VW Passat (price wise) in Norway. In the U.S., it competes against an Audi RS7, [BMW] M6, etc. If the Model S cost just a little more than a VW Passat in the U.S., I think it would sell more, don’t you?”
In terms of the power of word-of-mouth and how unofficial test drives from friends and family are propagating news of the value of the Model S in Norway, Andreassen said, “My father is about to replace his Audi A7 fully loaded with a P85D soon, so there will be two Teslas outside of our Esso station. First in the world?”
The Norwegian love of the Model S is tersely summarized by Are Koppang, an administrative director in Moelv, a city in southern Norway. “I drive a dream car, and cannot see how I will ever switch back to an ICE [internal combustion engine] vehicle.”
Embracing Renewable Energy
Culturally, Norway embraces renewable energy. According to EV News Report, 98% of the nation’s energy is derived from domestically generated, renewable sources. This is somewhat ironic, considering that the country, on a per-capita basis, is the world’s second largest producer of oil and natural gas, directly behind the Middle East (according to the CIA’s World Factbook). According to The Economist, “petroleum accounts for 30% of the government’s revenues.”
The desire to own a zero emission car was echoed by many responses I received from Norwegians. Sune Jakobsson, a system architect in Hommelvik, Sor-Trondelag, said he purchased a Model S, “To…buy an [electric car] with [a] more than 400 kilometer range, and the car is good for the environment.”
When asked why he purchased his Model S, Petter Karal, an owner from Oslo, said, “The opportunity to drive with a clean conscience.”
Goodbye Expensive Gas
Of course, one can’t discount the fact that gasoline is very, very expensive in Norway. In fact, as of February 2, gasoline in the country was selling at nearly four times the price in the United States, or more than $7.50 per US gallon. That’s no small incentive for Norwegians to dump gas-guzzling piston pumpers and adopt battery electric cars.
Arne Inge Dyrdahl, owner of a taxi company in Trondheim, cited saving money by not having to purchase gasoline as one of the primary benefits he gains from Model S ownership (he drives about 60,000 kilometers, or more than 37,000 miles, a year). “For me, tolls and fuel, if I only charge at home, saves me about 75,000 kroner [$10,000 USD] a year. More if I use Tesla’s free Superchargers.” Dyrdahl is anticipating delivery of his second Model S, a P85D, in March and has two Model Xs reserved.
Free Superchargers
Another reason for consumers in the country to consider a Model S is the healthy—and growing—network of Tesla Supercharger stations. Norway’s network of the fast-charge depots is currently populated by 21 such stations, available free of charge to all Model S customers (except those who purchase the entry-level 60 kWh model sans the “Supercharger Enabled” option, which is priced at $2,000 in the States).
All other Model S owners, if they live near one of these charging stations, get to enjoy free power for the life of their vehicle. In a country where petrol sells for more than $7 per gallon, this is no insignificant benefit. Tesla is planning to open five additional Supercharger stations in the country in 2015.
More Popular Than In California
Norwegians are adopting electric vehicles (EVs) in a way that matches the enthusiasm found in California. In fact, according to The Foreigner in a January 2015 article, sales of EVs in Norway have reached 15%, exceeding the saturation in the Golden State by nearly 50% (California recently reported 10% of new car sales being electric). “Some 40,000 electric vehicles were traveling on Norway’s roads as of December 2014,” reported the site.
When you add it up, it’s not surprising that Norwegians are embracing the Model S and purchasing the seductive sedan in record numbers. Even consumers who normally would find it difficult to justify the cost of a luxury car are doing the math and discovering that they can afford a Tesla.
Based on the savings from gasoline and no automotive tax, especially for those who pile on the miles, Norwegian consumers can enjoy a quiet, high-performance, luxury vehicle featuring state-of-the-art technology. Add in savings on maintenance (oil changes, transmission repairs, and exhaust work become a thing of the past), and no tolls or parking charges, and the mystery is solved: Norway loves the Model S because it saves them money and helps preserve their beautiful environment.
This is best summed up by Norwegian Model S owner Cato Standal, a manager with Emerson in Telemark, who said his purchase was a “Once in a lifetime opportunity to buy a vehicle with over 400 horsepower for the same price as a VW Passat,” adding, “Many of my friends who have tested the car [are] also thinking about buying [it].”
I’m surprised that I’m not seeing more Model S sedans show up in Lilyhammer. Apparently Tesla is more focused on engineering one of the world’s best battery electric cars than product placement. And Norwegians are applauding them all the way to the Supercharger station—after which they visit the bank to deposit what they saved on gas.
Elon Musk
SpaceX to launch military missile tracking satellites through new Space Force contract
SpaceX wins a $178.5M Space Force contract to launch missile tracking satellites starting in 2027.
The U.S. Space Force awarded SpaceX a $178.5 million task order on April 1, 2026 to launch missile tracking satellites for the Space Development Agency. The contract, designated SDA-4, covers two Falcon 9 launches beginning in Q3 2027, one from Cape Canaveral Space Force Station in Florida and one from Vandenberg Space Force Base in California. The satellites, built by Sierra Space, are designed to bolster the nation’s ability to detect and track missile threats from orbit.
The award falls under the National Security Space Launch Phase 3 Lane 1 program, which Space Force uses to move payloads to orbit on faster timelines and at more competitive prices. “Our Lane 1 contract affords us the flexibility to deliver satellites for our customers, like SDA, more easily and faster than ever before to all the orbits our satellites need to reach,” said Col. Matt Flahive, SSC’s system program director for Launch Acquisition, in the official press release.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The SDA-4 contract is the latest in a long string of national security wins for SpaceX. As Teslarati reported last month, the Space Force recently shifted a GPS III satellite launch from ULA’s Vulcan rocket to SpaceX’s Falcon 9 after a significant Vulcan booster anomaly grounded ULA’s military missions indefinitely. That move made it four consecutive GPS III satellites transferred to SpaceX after contracts were originally awarded to its competitor.
This didn’t come without a fight and dates back years. SpaceX originally had to sue the Air Force in 2014 for the right to compete for national security launches, at a time when United Launch Alliance held a near monopoly on the market. Since then, the company has steadily displaced ULA as the dominant provider, and last year the Space Force confirmed SpaceX would handle approximately 60 percent of all Phase 3 launches through 2032, worth close to $6 billion.
With missile defense satellites now part of its launch manifest alongside GPS, communications, and reconnaissance payloads, SpaceX is giving hungry investors something to chew on before its imminent IPO.
Elon Musk
Tesla’s Q1 delivery figures show Elon Musk was right
On the surface, the numbers reflect a mature EV market facing competition, softening demand, and the loss of certain incentives. Yet they also quietly validate a prediction Elon Musk has repeated for years: Tesla’s traditional auto business is becoming far less central to the company’s future.
Tesla reported its Q1 delivery figures on Thursday, and the figures — solid but unspectacular — show that CEO Elon Musk was right about what the company’s most important production and division would be.
We are seeing that shift occur in real time.
Tesla delivered 358,023 vehicles in the first quarter of 2026, according to the company’s official report released April 2.
The figure represents modest year-over-year growth of roughly 6 percent from Q1 2025’s 336,681 deliveries but a sharp sequential drop from Q4 2025’s 418,227. Production reached 408,386 vehicles, while energy storage deployments hit 8.8 GWh.
On the surface, the numbers reflect a mature EV market facing competition, softening demand, and the loss of certain incentives. Yet they also quietly validate a prediction Elon Musk has repeated for years: Tesla’s traditional auto business is becoming far less central to the company’s future.
Musk has long argued that vehicles alone will not define Tesla’s value.
Optimus Will Be Tesla’s Big Thing
In September 2025, Musk stated bluntly on X that “~80% of Tesla’s value will be Optimus,” the company’s humanoid robot.
He has described Optimus as potentially “more significant than the vehicle business over time.” Those comments were not abstract futurism. In January 2026, during the Q4 2025 earnings call, Musk announced the end of Model S and X production, framing it as an “honorable discharge,” he called it.
Those are the biggest factors.
~80% of Tesla’s value will be Optimus.
— Elon Musk (@elonmusk) September 1, 2025
The Fremont factory space, once dedicated to those flagship sedans, is being converted into an Optimus manufacturing line, with a long-term target of one million robots per year from that single facility alone.
The Q1 2026 numbers arrive at precisely the moment this strategic pivot is accelerating. Model 3 and Y deliveries totaled 341,893 units, while “other models” (including Cybertruck, Semi, and the final wave of S/X) added 16,130.
Growth is no longer explosive because Tesla is no longer chasing volume at all costs. Instead, the company is reallocating capital and factory floor space toward autonomy, energy storage, and robotics, businesses Musk believes will command far higher margins and enterprise value than incremental car sales.
Delivery Hits and Misses are Becoming Less Important
Wall Street’s pre-release consensus had pegged deliveries near 365,000. Coming in below that estimate might have rattled investors focused solely on automotive metrics. Yet Musk’s thesis has never been about maximizing quarterly vehicle shipments.
Tesla, he has insisted, “has never been valued strictly as a car company.”
The modest Q1 auto performance, paired with the deliberate wind-down of legacy programs and the ramp of Optimus, underscores that point. While EV demand stabilizes, Tesla is building the infrastructure for Robotaxis and humanoid robots that could dwarf today’s car business.
The future is here, and it is happening. It’s funny to think about how quickly Tesla was able to disrupt the traditional automotive business and force many car companies to show their hand. But just as fast as Tesla disrupted that, it is now moving to disrupt its own operation.
Cars, once the only recognizable and widely-known division of Tesla, is now becoming a background effort, slowly being overtaken by the company’s ambitions to dominate AI, autonomy, and robotics for years to come.
Critics may still view the shift as risky or premature. But the Q1 figures, solid but unspectacular in the auto segment, illustrate exactly what Musk has been signaling: the era when Tesla’s valuation rose and fell with every Model Y delivery is ending.
The company’s long-term bet is on AI-driven products that turn vehicles into high-margin robotaxis and factories into robot foundries. Thursday’s delivery report did not just meet the market’s tempered expectations; it proved Elon Musk was right all along.
The car business, once everything, is quietly becoming an important piece of a much larger puzzle.
Investor's Corner
Tesla reports Q1 deliveries, missing expectations slightly
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market.
Tesla reported deliveries for the first quarter of 2026 today, missing expectations set by Wall Street analysts slightly as the company aims to have a massive year in terms of sales, along with other projects.
Tesla delivered 358,023 vehicles in the first quarter of 2026, marking a 6.3 percent increase from 336,681 vehicles in Q1 2025.
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market. Production reached approximately 362,000 vehicles, with Model 3 and Model Y accounting for the vast majority. The results come as Tesla navigates softening demand, intensifying competition in China and Europe, and the expiration of key U.S. federal tax incentives.
🚨 BREAKING: Tesla delivered 358,023 vehicles in Q1 2026
Tesla also reported record energy deployments of 8.8 GWh
Wall Street had delivery consensus estimates of 365,645 pic.twitter.com/EVNAu5L3UT
— TESLARATI (@Teslarati) April 2, 2026
Energy storage deployments provided a bright spot, hitting a record 8.8 GWh in Q1. This underscores the accelerating momentum in Tesla’s energy segment, which has become a critical growth driver even as automotive volumes stabilize.
Year-over-year, the energy business continues to outpace vehicle sales, with analysts noting strong backlog demand for Megapack systems amid rising grid-scale needs for renewables and AI data centers.
Looking ahead, analysts project full-year 2026 vehicle deliveries in the range of 1.69 million units—a modest 3-5% rise from roughly 1.64 million in 2025.
Growth is expected to accelerate in the second half as production ramps and new incentives emerge in select markets. However, risks remain: persistent high interest rates, price competition from legacy automakers and Chinese EV makers, and potential margin pressure could cap upside.
Tesla has not issued official full-year guidance, but executives have signaled confidence in sequential quarterly improvements driven by cost reductions and refreshed lineups.
By the end of 2026, Tesla plans several major product launches to reignite momentum. The refreshed Model Y, including a new 7-seater variant already rolling out in select markets, is expected to boost family-oriented sales with updated styling, efficiency gains, and interior enhancements.
Autonomous ambitions remain central to Tesla’s mission, and that’s where the vast majority of the attention has been put. Volume production of the Cybercab (Robotaxi) is targeted to begin ramping in 2026, potentially unlocking new revenue streams through unsupervised Full Self-Driving (FSD) deployment.
A next-generation affordable EV platform, possibly under $30,000, is also in advanced planning stages for 2026 or 2027 introduction. On the energy front, the Megapack 3 and larger Megablock systems will drive further deployment scale.
While Q1 highlights transitional challenges in autos, Tesla’s diversified roadmap, spanning refreshed consumer vehicles, commercial trucks, Robotaxis, and explosive energy growth, positions the company for a stronger second half and beyond. Investors will watch Q2 closely for signs of sustained recovery, especially with new vehicles potentially on the horizon.


