In Norway, It May Be Cheaper To Run A Tesla Than A Toyota Prius

JUL 21 2018 BY EVANNEX 17


Electric cars are running rampant in Norway. Even pricey options from American automaker Tesla are becoming commonplace on the streets of Oslo. Why? According to a report from CNBC, Norway is “the country where a luxury Tesla has become the budget option.”

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Matt Pressman. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Above: A Model S on display at Oslo’s Tesla store (Flickr: Norsk Elbilforening)

CNBC’s David Reid points to an example from “Marte Skogstad Allgot [who] moved back to Oslo, Norway, from London two years ago and soon found that running a car on gas was prohibitively expensive. To her surprise, Allgot discovered it was cheaper to run a fully-electric Tesla Model S car than it was to drive a hybrid Toyota Prius.”

“When we added up how much we were spending on tolls and fuel it was the equivalent of buying a Model S,” she told CNBC. “I still can’t believe that buying what I consider to be an expensive, luxury car makes more economic sense than owning a Prius.”

Above: A look at why the streets of Oslo are teeming with Teslas (Youtube: Vox); Editor’s Note: Tesla’s Model S P100DL 0-60 MPH acceleration was recently clocked in at 2.28 seconds.

All-electric vehicles don’t have to pay tolls stationed at city boundaries in Norway. Allgot says the savings can add up. “The toll system is electronic so you don’t notice the 54 Norwegian crowns ($7) every time, but when you see that bill at the end of the month you have to ask whether it is worth it,” she said.

Allgot’s solution was to buy a Tesla. And she’s not alone. According to the European Alternative Fuels Observatory (EAFO), Tesla’s premium sedan, the Model S, and, its luxury SUV, the Model X, combine to make up 27.9% of Norway’s battery electric vehicle sales in the past 12 months.

Above: A look at the top 5 bestselling electric vehicle models in Norway over the past 12 months sorted by BEV options (Source: EAFO)

Norway’s EV policy is described (via Norsk evilforening) as “a substantial package of incentives developed to promote zero-emission cars.” Substantial indeed. Norway’s EV policies have helped to grow the country’s market share for battery electric vehicles (BEVs) to 20.8% and 18.4% for plug-in hybrids (PHEVs) — combining for a total of 39.2% for 2017.

Source: NPRA. *Last updated: 30th June 2018. Numbers include passenger cars and light commercial vehicles. (Chart: Norsk evilforening)

So what are some of Norway’s policy incentives that have contributed to all this explosive growth in the EV sector? Norsk evilforening provides a comprehensive list (including recent updates) of Norway’s EV policies, see below.

Above: An overview and chronology of Norway’s EV policy incentives (Source: Norsk evilforening)

In addition, “the Norwegian Parliament has decided on a goal that all new cars sold by 2025 should be zero emission vehicles.” Furthermore, “The overall signal from the majority of political parties is that it should always be economically beneficial to choose zero and low emission cars over high emission cars.”

Such support from the government spans nearly three decades in Norway. For a look back at some key milestones over the years, check out the infographic below.

Infographic: Norwegian EV policy history

Source: Norsk evilforening

*Editor’s Note: EVANNEX, which also sells aftermarket gear for Teslas, has kindly allowed us to share some of its content with our readers, free of charge. Our thanks go out to EVANNEX. Check out the site here.

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17 Comments on "In Norway, It May Be Cheaper To Run A Tesla Than A Toyota Prius"

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Cheaper than a Prius, and a helluva LOT more fun, too! Nice work Tesla!

In Québec, it cost five times less to run a Tesla S on electricity than to run a Prius on gas.

You’re talking about fuel cost. This article is including lease/financing cost, which is something like $15k+/year for an S or X.

That’s pretty incredible.

“Cross-party political consensus to uphold Zero Emission vehicle incentives” would be nice to have in the US. Of course, it will never happen in the current political atmosphere.
Norway is a strange (but nice) place.

Autocorrect seems to have turned “norsk elbilforening” into Norsk evilforening. In this case it is autocorrect that is evil.

Well, some hardened gas guzzler lovers seem to believe all sane progress is evil, so to them “evil” probably makes perfect sense.

Wouldn’t a Nissan Leaf be even cheaper?

Of course — but not everyone would consider it an alternative to a Prius, due to various limitations. Teslas have virtually no limitations compared to combustion cars.

The 2011-2017 Leaf has significant range limitations during the Winter months in the harsh Norwegian elements.

Any extended driving in a Leaf, in the Norwegian sub zero Winter, especially an older one (3 or more years of age, with approx. 10% + Battery capacity loss), is going to have around only an estimated 50 miles / 30 kilometers of weather depending variable range, ( + or – 10 mi. / 6 k. ).

Once an older 24 kWh 2011-2015 Nissan Leaf reaches 5 years of in service use, only an approximate 18kWh or less of battery capacity, is readily available for longer destination driving. That makes CHAdeMO DC fast charging (every 40 or 50 mi. / 24 or 30 k. ) pretty much an absolute necessity.

40-50 miles = 64-80 kilometers, which turns out to be the correct conversion, my bad!

Yes, of course. All the cheaper EVs that do the job will be cheaper to run then any ICE vehicle.

Ecxeptions are a cheap diesel car, with good fuel economy, for people who does not drive very much, who live in an area with no/few toll roads.

There are no signs fuel will be cheaper in Norway, and electricity will be more expensive due to Norways export of electricity to other countries. If electricity stays fairly cheap, EVs will allways be the best option in the future. In about 7 years time, there will not be any ICE vehicles for sale anyway. If there are, they will be taxed to hell and back, and fuel costs will bleed you dry.

There are of course also positive and negative consequences of expensive ICE cars and fuel.
Everything gets expensive. Like.. everything.
Everything needs to be transported. When transport is expensive, it adds on the price in every step.
Food, products, service.. is all more expensive due to to transportation costs.

Unfortunately all the incentives weren’t enough to keep Th!nk afloat, or the old Kewet competitive.

That was basically because 3 groups of things were missing. 1. This was early, so they did not use lithium batteries. Later they did not switch to lithium batteries when that would be possible. 2. The lack of car assembly experience, mixed with low level of automation, and in general no other local companies to work together with. In general, Norways research and production is cutting egde when it comes to the oil industry, special parts for the semiconductor industry and marine technology in general. When it comes to cars, we have companies that make parts, for a lot of huge brands – but in general, it does not require a lot of assembly. They have what they need to make their parts, but not othet things. If they all had cooperated, and hired the right people for automation. . Then maybe. 3. Investors did not move fast enough, and did not invest enough money. Setting up an advanced production line, with proper tooling, and to use enough engineering hours on parts, and understand that they had to design a car from scratch, that would be just as good and safe as a normal car, and just make it electric.… Read more »

They made toy cars, which almost nobody wanted to buy. There was no market for electric cars, until Tesla showed that it’s possible to make real cars with an electric power train; and that if you do, people will actually want to buy them…

There are about 5 million people in Norway, that can effect results.

Why not buy a Chevy Bolt? A lot less money to buy and you get all the incentives that electric cars receive in Norway.

So Norway which number one industry is fossil fuel, makes it cost prohibitive to own a car that runs on it. So typical of a quasi-Socialist country, which almost forces you to buy one expensive product over a product that is much less expensive but is just as capable aproduct for most peoples driving habits. But Norway basically forcing people to drive all electric cars will not be such a great deal in the long run, because being a Socialist country that loves to tax it’s people, it will start charging tolls and mileage tax for electric cars when gasoline cars are banned.