Will Elon Musk’s Politics Impact Tesla Sales?

On March 22, 2022, Elon Musk, the CEO of Tesla, was present for the grand opening of the brand new Tesla electric car manufacturing plant in Gruenheide, Germany. This newly established production house officially goes by the name Gigafactory Berlin-Brandenburg and has been churning out the famous Model Y electric cars along with electric car batteries. The event was graced by Christian Marquardt, who took a pool picture of the entire ceremony.

As Tesla continues to introduce new models and decrease prices, it may become even more influential and grow larger. Additionally, its CEO may become more outspoken. However, will this negatively impact how widely accepted the Tesla brand is?

Due to Musk's vocal support of conservative and libertarian beliefs, he often attracts the attention of the media, which tends to be critical of him. Rarely does he receive positive coverage.

As an illustration, a current article in the Wall Street Journal asserts that he has "adopted Trump-like behaviors" and "his actions could potentially repel his Tesla clientele."

Lately, there have been several articles criticizing Musk, such as the one by NBC, for his views on DEI (Diversity, Equity, and Inclusion). Additionally, he received criticism and then apologized for a post he made in November that was deemed anti-Semitic.

There are many discussions on Tesla Reddit forums about Musk's political views, and people are concerned that this could negatively impact Tesla's sales in the future. Musk also doesn't make things easier for himself by tweeting inappropriate pictures, which don't really seem to have anything to do with anything.

Negative comments about Musk tend to generate backlash from his avid supporters and fans of Tesla on social media. However, some of these individuals may not be very considerate in their defense of Musk.

During an interview with the BBC last year, the CEO of Tesla stated that he has made mistakes by posting tweets at late hours. He admitted to having harmed himself through these actions and it has caused him to reconsider his social media habits.

However, the question remains whether Musk's impulsive statements and recent unfavorable media attention will have an effect on Tesla's sales.

Sam Fiorani, who serves as the Vice President of Global Vehicle Forecasting at AutoForecast Solutions LLC in Chester Springs, Pennsylvania, expressed his belief that Elon Musk is not doing anything to aid in the growth of the electric vehicle market.

It's possible that Fiorani is correct, but at the moment, it seems that only a small group of people who are particularly offended by his comments are considering not purchasing a Tesla.

The sales of Tesla experienced a surge during the fourth quarter following a series of reductions in prices. The total number of cars sold went up to 484,500, which was an improvement from the 435,000 recorded in the previous quarter. This is a significant increase compared to the figures from the same period in the prior year, as the sales rose from 405,000. If this progress is maintained, Tesla might be able to surpass Mercedes Benz by 2024, with over 1.8 million vehicles sold throughout the year. This information was disclosed by the New York Times.

I reside in Los Angeles, a city known for its progressive attitudes. Whenever I visit the nearby Whole Foods, the parking lot is full of Tesla vehicles. It seems that the owners of these Model Ys are indifferent or unaware of Musk's opinions or the opinions of journalists.

They purchase the car with the intention of using it for practical purposes.

Musk is similar to Henry Ford or Howard Hughes, whether it's good or bad, as many people have said, including those who commented on the WSJ article mentioned. He is not concerned with what others may think, and any opposition only strengthens his determination.

In a wider sense, Musk's political beliefs do not have much impact on regular American car purchasers. To illustrate, his opinions will not persuade conservative individuals who are strongly attached to fossil fuel cars to switch to Tesla vehicles. As shown by a Yahoo Finance/Ipsos study conducted in October of the prior year, many individuals who refuse to purchase an electric vehicle do so because they believe they are overly costly and do not offer sufficient driving distance.

Fiorani stated that the buyers of ICE vehicles will gradually switch to EVs in the wider EV market.

According to Fiorani, promoting your political beliefs while operating a business is not advantageous. However, he also mentioned that even if political talking persists, the present shift will continue to progress gradually.

I want to emphasize that Tesla is not a standard company. The destiny of the company will be shaped by the appearance, standard, protection, cost, and innovation in their automobiles, not by political factors.