Tesla sales have been declining recently and many people blame this trend on Elon Musk, the company’s controversial CEO. Known for his high-profile online antics, Musk’s reputation seems to be working against Tesla. The “vast majority” of readers, according to a poll conducted by The New York Times with over 7,500 participants, were skeptical of Musk’s political positions and unpredictable behavior, which have begun to damage Tesla’s brand.
One notable example comes from Aaron Shepherd, a product designer at Microsoft based in Seattle. Shepherd chose Volkswagen’s electric ID.4 SUV over a Tesla, citing Musk’s politics as the decisive factor. “You’re basically driving around a giant red MAGA hat,” Shepherd remarked, encapsulating a sentiment shared by many others.
Similarly, Achidi Ndifang, an IT worker from Baltimore, highlighted Musk’s perceived anti-Black racism as a major deterrent. Ndifang mentioned that his mother had been considering purchasing a Tesla, but he felt it would be an insult for her to do so given Musk’s controversial remarks. This sentiment underscores a growing difficulty for potential buyers to separate the man from his machines.
Industry analysts like Ben Rose, president of Battle Road Research, acknowledge Musk as a “true lightning rod.” His divisive comments have alienated a segment of potential customers, driving them towards alternative brands. Rose points out that while some can overlook Musk’s persona, others find it compelling enough to avoid Tesla entirely.
Former fans are also turning away from Tesla. Tim Yokum, a software engineer from Chicago, once an avid supporter of Musk, now considers his current Tesla Model S to be his last. “Tesla is the only manufacturer in contemporary times that has unapologetically let its CEO take a tiki torch to its good name,” he stated, referencing the infamous tiki torches of the 2017 Charlottesville protest.
As Musk continues to polarize opinions, it’s clear that his personal brand is having a tangible effect on Tesla’s market performance. This situation highlights the complex interplay between corporate leadership and consumer perception in the contemporary marketplace.
