Tesla sales have been steeply dropping recently this year in the United States and Europe, and this double-digit fall in some countries are leading many to question the actions of Tesla CEO Elon Musk.
Musk has been very vocal on the X social media platform, coming out very aggressively against Democratic policymakers and liberals in general. With his inclusion in the Donald Trump Presidential administration, heading the Department Of Government Efficiency, he has all but declared war on a little less than half of the country that voted for Kamala Harris.
Musk has also criticized the policies of more than a few European countries as well as Canada, and Mexico.
While I am not here to debate those policies and Musk’s very public opinion, I do understand why his outspokenness could cause damage to sales at Tesla. Combine that with comparable EV offerings from Rivian, Hyundai, and a plethora of Chinese EV manufacturers, it is sure to cost Tesla market share.
According to The Daily Mail, Vice President J.D. Vance felt the need to defend Musk and chastise EU leaders the Munich Security Conference Friday.
“Trust me, I say this with all humor, if American democracy can survive 10 years of Greta Thunberg‘s scolding, you guys can survive a few months of Elon Musk,” Vance reportedly said.
As an EV technician and educator, I belong to a long list of Tesla enthusiast groups and Facebook pages. While most of these pages are about technical questions, I am seeing more and more owners making posts about selling their Tesla models because they do not politically agree with Musk.
I belong to a lot of other non-Tesla-specific automotive themed pages as well and notice not only the lack of those types of posts, but the absolute refusal of members to discuss anything political. In my experience, Tesla owners are much more politically active than your average car enthusiast or owner. I would bet good money most people could not name the CEO of the car make in their driveway, unless you ask a Tesla owner or perhaps a labor Union member.
As Musk faces criticism from both the liberal side of the country for his opinions and the conservative side for his product. This may continue to put a squeeze on Tesla’s sales figures and stock price in the foreseeable future.
If you know anything about Elon Musk, you will have an understanding that he doesn’t really care if his opinions hurt his sales or his stock price. The man has proven he sticks to his principles time and time again, even moving his entire operation out of California to Texas due to disagreement with local and state politicians there.
Musk may be banking on the success of DOGE to eventually make him a hero and cause sales figures to blossom.
Companies taking political sides is nothing new, but it has seemed to get a lot more attention since the introduction of social media. Companies such as Chick-Fil-A, Target, Starbucks, Budweiser, and Amazon have been targeted by activist groups from both sides, promising boycotts and the lost sales, stock price drops, layoffs, and even store closings have been the result in some cases.
In full disclosure, I do own Tesla stock and buy Tesla products. My reason is I believe in the product and the vision of the company. With their investments in robotaxi technology, solar installations, and consumer robotics, I still think they have a bright future, but I do worry a little about Musk being spread too thin. Between all his current endeavors and the addition of his work in the Trump administration, I do not think his eye is on Tesla as much as it should be.
About 15 years ago, I ran for public office. I remember getting a sizable donation to my campaign from a local business owner that owned an independent automotive repair shop. I knew him fairly well professionally, so I gave him a call to personally thank him. I offered to give him a campaign yard sign for his yard and his business. He politely declined and told me he did not mix business with politics. I wasn’t offended, but I did take me a while to understand his position.
While there are many that are cheering Musk’s work with the Department of Government Efficiency, I do not think most of them are or will be putting a Tesla in their driveway. Time will tell if the damage will be long term.
As for me, I will see you on the road!
