Tesla, Elon Musk and the Global EV Alliance study: are politics hurting sales?

Tesla sales dip as Elon Musk steps deeper into US politics

This year, Tesla’s sales fell at roughly the same time as Elon Musk took on a high-profile role in American politics. The obvious question is whether the two were actually connected - and a new study suggests an unexpected answer.

A vocal supporter of Donald Trump during his presidential campaign, including through financial backing, Elon Musk was later rewarded with a prominent position in government. As head of the Department of Government Efficiency (DOGE), the billionaire was tasked with overseeing sweeping budget cuts. Although he has since left the post, the episode significantly damaged his public image.

That impact was amplified because the SpaceX boss also made a series of controversial statements, even attempting to influence elections in Europe. Unsurprisingly, many electric-car drivers said they regretted owning a vehicle from Tesla.

Some dealerships were even hit by acts of vandalism aimed specifically at the manufacturer’s CEO. And, as you might expect, Tesla’s sales declined - particularly during the first part of the year.

A trend that differs by country

The Global EV Alliance, an international network of associations representing electric-vehicle drivers, carried out a large study on EV adoption worldwide. To do so, it surveyed 26,000 motorists across around 30 countries. One section of the research focused directly on the effects of Elon Musk’s actions.

When asked, “Would you avoid a car brand for political reasons?”, 53% of respondents worldwide said yes. However, the results vary widely between countries: the figure rises to 71% in Denmark, but falls to 16% in Brazil.

“Overall, we observe that in countries where EV adoption is still limited and where choice is restricted, the brand matters less in consumers’ decisions,” notes Ellen Hiep, a member of the association’s management committee.

Tesla is the brand most often mentioned for political reasons

Another striking finding is that 42% of respondents named Tesla as a brand they would avoid for political reasons. Far behind, 12% cited “China”, and only 1% explicitly mentioned BYD, the leading carmaker from China. “The results show that, even if price and vehicle features remain the dominant factors when purchasing, brand reputation also influences choices,” concludes the Global EV Alliance.