Is it Trumpist to drive a Tesla? Political polarization hits the brand
Some shareholders are concerned about Elon Musk’s support for the Republican campaign, even though revenue has continued to grow
Elon Musk’s personal and financial support for Donald Trump’s campaign, along with the shift in the social media platform X (formerly Twitter) and his own controversial comments, have left some Tesla shareholders concerned about the potential negative perception of the brand. Numerous questions regarding this issue have surfaced in the company’s investor forum.
“Have you attempted to quantify the impact of Elon Musk’s rhetoric and political activities on Tesla’s sales targets and the company’s ability to attract talent? If so, what have you found?” an investor inquired. “What steps are being taken to address the far-right image and the damage it may cause to sales? I have several friends who have sold their Teslas and will not buy another one another because of this.”
These concerns received little attention during the analyst call following a quarter in which the automaker reported an impressive 8% revenue growth and a 17% increase in profit, reaching $2.2 billion. On Thursday, the company’s shares surged nearly 22%, reversing its year-to-date losses. However, shareholders’ worries are well-founded.
In August, automotive inventory and information firm Edmunds conducted a survey of potential car buyers planning to purchase a new vehicle within the next 12 months, revealing that polarization is affecting the brand’s image. Thirty-one percent of car buyers are less interested in purchasing a Tesla due to Musk’s influence.
“Among those buyers who are genuinely interested in electric vehicles, that percentage rises to 36%.” Conversely, 37% of prospective electric vehicle buyers stated they would consider a Tesla specifically because of its CEO. This survey — which was conducted before Musk endorsed Trump — shows that it is Democratic women who are the most likely to reject Tesla: 44% stated they would never purchase one.
The reality is that one-third of consumers now view choosing an electric vehicle as a political statement. Traditionally, this stance has been associated with the opposite political spectrum, and members of the Republican Party have even questioned the commitment to supporting the energy transition in the automotive industry. This backdrop prompted one shareholder to ask, “If Musk continues his political involvement, what are your plans to change right-wing consumers’ perceptions of electric cars?”
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