In a recent X Spaces audio chat, Tesla’s CEO Elon Musk dismissed the notion that Tesla’s sales have suffered due to his public political stances. Citing record-high sales figures, Musk argued that Tesla’s success hinges solely on product quality, not on the CEO’s politics.
“Tesla’s sales are actually doing great… We’re hitting all-time highs,” Musk said. However, the numbers tell a different story. Tesla’s sales showed a downward trend in the first half of 2024, with an 8.5% decrease in Q1 followed by a 5% decline in Q2.
Although sales rebounded slightly at the beginning of October, it’s unlikely to reverse the two consecutive quarters of decline. This slump has been attributed to rising competition, the underwhelming reception of the Cybertruck, and, notably, Musk’s increasingly polarizing public persona.
Musk’s assertion that EV buyers are indifferent to the CEO’s politics also raised eyebrows. “People really care about the quality of the product as opposed to whether they agree or disagree with the CEO’s views,” he said.
Yet, reports from sources like Futurism have shown that Musk’s outspoken support for Trump and divisive culture war topics has alienated Tesla’s core customers, particularly those in the environmentally conscious demographic typically associated with EV ownership. For years, electric cars have been a flashpoint in political discourse, with oil-backed politicians attempting to undermine the EV sector. Musk’s alignment with conservative rhetoric contrasts with the eco-conscious values many Tesla buyers hold, leading to a noticeable drop in customer loyalty.
“At the end of the day what matters is if Tesla makes a great product, and people like buying great products,” Musk said.
Despite his confidence, the reality appears more complex: Tesla’s market trajectory is increasingly shaped by both product quality and the political climate surrounding its CEO.