Not too long ago, Tesla set up shop in Norway, looking to gain some market share in the frosty nation of 5 million.
Little did anyone know just how big the share would grow.
According to Freakonomics, Norway is the second largest market for the premium EV automaker, with March 2014 being the best month in Model S orders thus far. However, not only was it the best month for Tesla, it was the best month for breaking a record: 1,493 units registered, the most units ever recorded with Norwegian authorities in one month since Ford moved 1,454 Sierras in May of 1986.
Through the first nine months of 2014, the automaker averaged 435 regisrations per month, despite the price for a new Model S beginning at kr461,000 (~$100,000 USD); never mind how much a used Model S goes for up there.
How is this possible? Subsidies and incentives so huge it would make the Japanese government blush. Those subsidies help bring the price down to levels found among gasoline-powered vehicles, and are fueled, ironically, by a sovereign wealth fund created from Norway's massive oil reserves. The fund was created to future-proof the nation from "Dutch Disease": Over-specialization in the production and export of natural resources at the expense of every other industry in a given country.
Alas, those subsidies won't last long: Only the first 50,000 registrations will enjoy the perks of pushing a green future.
The post Sovereign Subsidies Fuel Norwegian Tesla Registrations appeared first on The Truth About Cars.
from The Truth About Cars http://ift.tt/Jh8LjA
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