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Why Norway Loves the Tesla Model S

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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.

Tesla-Model-S-in-the-snow

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.

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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?

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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.

tesla model s in actionNorway’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).

tesla superchargerStåle 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?”

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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.tesla-model-s-gas-station

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.

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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.

Vacaville Supercharger

“Filling up” the Teslarati 48 race car at the Vacaville, CA Tesla Supercharger

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].”

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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.

curtsig2 - trans
Curt Robbins

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Tesla Full Self-Driving v14.2 – Full Review, the Good and the Bad

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Credit: Teslarati

Tesla rolled out Full Self-Driving version 14.2 yesterday to members of the Early Access Program (EAP). Expectations were high, and Tesla surely delivered.

With the rollout of Tesla FSD v14.2, there were major benchmarks for improvement from the v14.1 suite, which spanned across seven improvements. Our final experience with v14.1 was with v14.1.7, and to be honest, things were good, but it felt like there were a handful of regressions from previous iterations.

While there were improvements in brake stabbing and hesitation, we did experience a few small interventions related to navigation and just overall performance. It was nothing major; there were no critical takeovers that required any major publicity, as they were more or less subjective things that I was not particularly comfortable with. Other drivers might have been more relaxed.

With v14.2 hitting our cars yesterday, there were a handful of things we truly noticed in terms of improvement, most notably the lack of brake stabbing and hesitation, a major complaint with v14.1.x.

However, in a 62-minute drive that was fully recorded, there were a lot of positives, and only one true complaint, which was something we haven’t had issues with in the past.

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The Good

Lack of Brake Stabbing and Hesitation

Perhaps the most notable and publicized issue with v14.1.x was the presence of brake stabbing and hesitation. Arriving at intersections was particularly nerve-racking on the previous version simply because of this. At four-way stops, the car would not be assertive enough to take its turn, especially when other vehicles at the same intersection would inch forward or start to move.

This was a major problem.

However, there were no instances of this yesterday on our lengthy drive. It was much more assertive when arriving at these types of scenarios, but was also more patient when FSD knew it was not the car’s turn to proceed.

This improvement was the most noticeable throughout the drive, along with fixes in overall smoothness.

Speed Profiles Seem to Be More Reasonable

There were a handful of FSD v14 users who felt as if the loss of a Max Speed setting was a negative. However, these complaints will, in our opinion, begin to subside, especially as things have seemed to be refined quite nicely with v14.2.

Freeway driving is where this is especially noticeable. If it’s traveling too slow, just switch to a faster profile. If it’s too fast, switch to a slower profile. However, the speeds seem to be much more defined with each Speed Profile, which is something that I really find to be a huge advantage. Previously, you could tell the difference in speeds, but not in driving styles. At times, Standard felt a lot like Hurry. Now, you can clearly tell the difference between the two.

It seems as if Tesla made a goal that drivers should be able to tell which Speed Profile is active if it was not shown on the screen. With v14.1.x, this was not necessarily something that could be done. With v14.2, if someone tested me on which Speed Profile was being used, I’m fairly certain I could pick each one.

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Better Overall Operation

I felt, at times, especially with v14.1.7, there were some jerky movements. Nothing that was super alarming, but there were times when things just felt a little more finicky than others.

v14.2 feels much smoother overall, with really great decision-making, lane changes that feel second nature, and a great speed of travel. It was a very comfortable ride.

The Bad

Parking

It feels as if there was a slight regression in parking quality, as both times v14.2 pulled into parking spots, I would have felt compelled to adjust manually if I were staying at my destinations. For the sake of testing, at my first destination, I arrived, allowed the car to park, and then left. At the tail-end of testing, I walked inside the store that FSD v14.2 drove me to, so I had to adjust the parking manually.

This was pretty disappointing. Apart from parking at Superchargers, which is always flawless, parking performance is something that needs some attention. The release notes for v14.2. state that parking spot selection and parking quality will improve with future versions.

However, this was truly my only complaint about v14.2.

You can check out our full 62-minute ride-along below:

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Elon Musk

SpaceX issues statement on Starship V3 Booster 18 anomaly

The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas. 

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Credit: SpaceX/X

SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas. 

SpaceX’s initial comment

As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.

“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X. 

Incident and aftermath

Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.

Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.

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Investor's Corner

Tesla analyst maintains $500 PT, says FSD drives better than humans now

The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.

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Credit: Tesla

Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers. 

The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.

Analysts highlight autonomy progress

During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.

The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report. 

Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”

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Street targets diverge on TSLA

While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.

Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements. 

Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs. 

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