How have Elon Musk's political affiliations affected Tesla's sales globally?

Tesla's sales have declined significantly, with a 45% drop in Europe and a 1% decline globally in 2024, marking the company's first annual sales decrease in 12 years. Musk's political activities have been cited as a factor in alienating some consumers.

What specific political actions by Elon Musk have led to consumer backlash?

Musk's support for far-right parties in Europe, such as the Alternative for Germany (AfD), and his criticisms of leaders like the UK Prime Minister have contributed to the backlash. Additionally, his close association with the Trump administration has alienated some consumers.

How has the backlash against Elon Musk affected Tesla's stock performance?

Tesla's stock has dropped significantly, with a 37% decline since Inauguration Day, resulting in a loss of $550 billion in investor wealth. This decline is partly attributed to Musk's political activities and their impact on consumer perception.

Are there any potential benefits to Elon Musk's political alliances for Tesla?

Some analysts suggest that Musk's alliance with the Trump administration could lead to regulatory easing for Tesla's autonomous vehicle technology, potentially benefiting the company's long-term growth.

3 sources·Business

Elon Musk's Political Shift Alienates Tesla Customers, Hits Sales and Stock

Elon Musk's political stance may be impacting Tesla's sales as the company faces a significant decline in market performance and customer concerns.

67%

33%

The distribution of story sources: left-leaning (blue), center (light gray), and right-leaning (red).

Reliable

The underlying sources consistently report facts with minimal bias, demonstrating high-quality journalism and accuracy.

Balanced

The underlying sources are either a balanced mix of left and right or primarily centrist.

But, if anything, that makes Musk’s political comments even more reckless, auto analysts say.
Musk embrace of right-wing politics risks turning off car buyers, sinking Tesla stock
ABC News·16d
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
·
Center
This outlet is balanced or reflects centrist views.
But, if anything, that makes Musk’s political comments even more reckless, auto analysts say.
Musk’s embrace of right-wing politics risks turning off car buyers and sinking Tesla’s stock
Boston Herald·16d
Mostly Reliable
This source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.
·
Leans Right
This outlet slightly leans right.
But, if anything, that makes Musk’s political comments even more reckless, auto analysts say.
Musk's embrace of right-wing politics risks turning off car buyers and sinking Tesla's stock
Associated Press·16d
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
·
Center
This outlet is balanced or reflects centrist views.

Mar 3rd, 2025, 12:16 PM ET

Summary

A summary of the key points of this story verified across multiple sources.

Tesla's sales have plunged 45% in Europe amid reports of Elon Musk's right-wing political affiliations, with experts warning it could alienate potential buyers. Analysts say Musk’s comments about politics could harm the brand, leading to protests and boycotts. As competitors emerge, many loyal customers express disappointment, contributing to a 37% drop in Tesla's stock since Inauguration Day, equating to $550 billion in losses. Some still support Musk, but the backlash raises concerns about Tesla's future and market position.

Perspectives

Compare opinions on this story from liberal (Left), conservative (Right) or center-leaning news organizations.

Elon Musk's political engagement is perceived as detrimental to Tesla's brand and sales, with significant drops reported in various markets.
Many investors and analysts highlight the risk of alienating a customer base that previously supported Musk as a figure of innovation and sustainability.
Analysts are divided on the long-term impact of boycotts and the competition Tesla faces from growing EV manufacturers.

FAQs

A list of follow-up questions readers often ask about this story.