When Elon Musk publicly backed Donald Trump, it wasn’t just a tweet that faded into the ether; it had real consequences.
CivicScience data shows a steep drop in Tesla’s favorability among Democrats, plunging to just 16% by mid-July—a stark decline from earlier numbers this year.
Republicans Pulling Away from Tesla Too
It appears that the faltering Democratic support for Tesla is echoed by Republicans, whose approval has dipped to 23%.
This bipartisan retreat suggests a wider issue of Musk’s political outspokenness clashing with Tesla’s brand identity.
Sales Slump in the Green Heart of America
California, Tesla’s stronghold and a beacon of environmental progressivism, is showing signs of a shift.
The Tesla Model Y, once the state’s top seller, saw a 17% registration drop from last year, marking a worrying trend for the EV giant.
Musk Shifts Base from California to Texas
In a bold move amidst sales woes, Elon Musk is relocating the headquarters of X and SpaceX to Texas, joining Tesla.
This transition from California, a pivotal state in the EV revolution, is a significant realignment for Musk’s ventures.
Rising Competition as Tesla’s Allure Wanes
With Tesla’s image tarnished by Musk’s controversies, competitors are seizing the opportunity.
They’re rolling out new electric models aimed at those disenchanted by Tesla’s recent political drama, potentially reshaping the EV market landscape.
Musk’s Political Commentary Intensifies Post-Twitter Purchase
Since taking over Twitter (now X), Musk has not shied away from political discourse, often merging personal ideologies with business.
His posts cover a range of divisive topics, which might be affecting how consumers see the Tesla brand.
Analyst Foresees Trouble for Tesla
Mark Spiegel, a critic of Tesla’s stock, didn’t hold back in his assessment to Yahoo Finance . “He completely alienated most of his buying base. … It’s going to kill the business.”
These words echo a growing concern that Musk’s political leanings could alienate a significant portion of Tesla’s customer base.
Political Allies Cool on EVs
Elon Musk’s preferred political figures, Donald Trump and J.D. Vance, have expressed lukewarm, if not adverse, sentiments towards electric vehicles, favoring traditional energy sources.
This stance starkly contrasts with Tesla’s mission and could complicate its future.
Trump’s Tough Stance on EVs
Donald Trump has been vocally critical of the shift towards electric vehicles, claiming it will “kill” the U.S. auto industry and describing the move as a “transition to hell.”
His administration might also roll back pro-EV policies, further complicating the landscape for Tesla.
Threat to EV Tax Credits
The future of the $7,500 federal EV tax credit is uncertain under Trump’s potential future administration, as he has hinted at its repeal.
This financial incentive is crucial for Tesla and the broader EV market, and its removal could have significant impacts.
Musk Unfazed by Potential Subsidy Cuts
Elon Musk seems prepared for a future without federal subsidies for electric vehicles.
His straightforward declaration on X, “Take away the subsidies. It will only help Tesla,” indicates a confidence that Tesla can compete without governmental support, highlighting his belief in the strength of Tesla’s products.
Navigating Uncertain Waters
Tesla is at a crossroads, with Musk’s increasing political engagement casting a shadow over its future.
How Tesla manages the blend of politics and business will be crucial in determining its standing in the competitive electric vehicle market, and whether it can sustain its pioneering status.
