Norway Wants To Cut Generous Electric Car Incentives And Impose A “Tesla Tax”

Norway’s government is planning to trim the generous tax breaks for Teslas and other electric vehicles that made the country the most popular place for EVs.

The proposed “Tesla tax”, as Norwegian media call it, would mainly affect cars that weigh more than two tonnes, which incidentally includes both the Model S and the Model X.

According to the Norway’s 2018 draft budget, the government seeks to change the exemption from vehicle registration taxes and discounts in taxation of company cars, Reuters reports.

The “Tesla tax” could push up the price of a Tesla Model X by 70,000 Norwegian crowns or about $8,870 in current exchange rates. “Electric cars will still be accorded significant advantages in comparison with cars running on fossil fuels,” the proposal said.

Last year, 29 percent of all new car registrations were electric or electrified vehicles in Norway, giving them the world’s highest rate of battery electric vehicles and leaving Netherlands second with 6.4 percent and Sweden in third position with 3.4 percent.

Tesla saw its sale rise by almost 90 percent to 4,717 cars during the first nine months of 2017, up from around 2,500 in the same period of 2016. Norway’s Environmental Minister said that the large EVs wear out the roads as much as the normal cars and that the generous subsidies were originally introduced to encourage customers buying small and more affordable EVs rather than luxury cars for the rich.

  • Erzhik

    “Electric cars will still be accorded significant advantages in comparison with cars running on fossil fuels,”

    Yeah, and how long will that last? And applying additional tax on cars over 2 tons would include any electric car as those batteries are heavy. Much heavier than the engine.

    • brn

      This does bring up an interesting issue. The weight of a car has an impact on the wear and tear on a road. When determining the true cost of an EV, that should also be taken into account.

      • LeStori

        Also has an effect on car tyre wear. More potentially dangerous tyre particles in the air. Possibly also more brake dust. In 10 years time we will probably have complaints about dirty EVs…

    • Jp

      Wrong. Leaf is 1600kg, Renault Zoe is 1470. It is a well known fact that Teslas are not as energy efficient as smaller electric cars.

      • Felix Le Forestier

        They are still as efficient from physical point of view. (Energy used for useful work)/(Energy injected) is the same.
        The problem is more that moving 2t requires more energy than moving a lighter car which goes against the concept of being “green”.

  • Blade t

    I would rather have wear and tear on the roads any day over bad air quality ,and co2 emissions….

    • Marty

      That’s not what we are choosing between here. We are choosing between EVs that are unnecessary large and EVs that are not.

      A Tesla S will still be like $40,000 cheaper than a BMW 7-series.

    • S3XY

      Any car with no death pipes is better than a car with them. I never drive with the windows down anymore due to all the disgusting gas fumes except If I’m cruising down PCH or a long stretch of road.

  • Rocc E. Normyss

    Reality is beginning to impact ‘the golden boy’ Tesla. In other news, Tesla fires scores of employees. More at 6.

  • Benjamin B.

    These are luxury vehicles. I find it funny how many Teslas I see around me (Orange County California). Owners don’t need a rebate. Jeremy Clarkson touched on this himself by calling out James May and his Volkswagen E Golf. Maybe only allow incentives for mainstream EVs and “affordable” models?

    • Jp

      While I mostly agree with what you said, the government incentives are here for a reason. In order for every niche technology to break through the mainstream market, it needs to be helped by richer people who can afford it in the first place to then cut production prices. This pattern has been seen with every kind of mass production.

      As you can see with Tesla’s financial results, they still are in this “rich-first” state, needing incentives to survive. It will make sense to cut these incentives once, as solar panels nowadays, the technology is cheap enough.

    • S3XY

      Tesla’s are not luxury vehicles, they are Premium sedans. CPO Tesla’s are $45,000-$60,000.

      Most Trucks and SUV’s on the road cost well above $50,000 let alone finite polluting dino juice costs, but you say that Tesla’s are not affordable. Ha.

  • Michael_66589

    Very well, Norway people will start buying ICE cars again.

    • S3XY

      Not.

  • JonPaul

    The State of Indiana along with I&M (AEP) Electric have really screwed up the electric car market as well. 1st off, the utility offers no incentives for electric car owners. In fact, the first of the year, if you have solar, and want to sell your excess electricity back to the utility, they will only pay you a fourth of what they charge, whereas it used to be 100%. The state has now imposed an additional $50.00 fee for registration of a hybrid vehicle, and a $150.00 additional fee for a total electric vehicle. The State of Indiana is totally anti-environment, but what does one expect… It’s run by Republicans.

    • Bob White

      And it’s broke, so you can’t expect common sense to prevail.

  • V6 3.0

    Dette er helt riktig av den norske regjering.

  • Rhydian Lewis

    This is not a Tesla tax as Tesla will be selling the Model 3 in Norway next year, and all versions of it are well below 2 tonnes. This is a ‘heavier car’ tax and would apply equally to electric SUVs from Nissan, Mercedes, Renault, BMW or anyone else. The headline is incorrect and simply a way to get the Tesla haters excited.