Elon Musk, the wealthiest man in the world and Twitter’s Chief Executive Officer, said he’s voting Republican in upcoming elections. That opinion has warmed the tech mogul up to conservatives everywhere. However, that’s also alienated his liberal supporters, who are far more likely to buy a Tesla.
Tesla is bleeding market share in the United States.
Forbes reports Tesla didn’t meet sales expectations in Q3 2022, falling short of its target by about 15,000 units. And according to Quartz, the company is bleeding market share in the United States. In January 2023, Tesla’s market share fell to about 63.5% of all electric vehicle sales in the U.S.
Although a majority of domestic EV sales are still Teslas, they once held over 70% of the fully-electric car market. And according to CNBC, Tesla ended 2022 with shares down 65% after failing to meet Q4 production expectations.
Most Tesla owners disagree with Elon Musk and his political stance.
According to The Street, at the end of 2022, only about 25% of Republicans said they’d consider driving an EV. Whereas about 44% of Democrats said they would consider owning or leasing an electric vehicle. And calling the Democratic party the “party of division & hate” has hurt Tesla’s stock in the eyes of left-leaning Americans.
Additionally, according to Pew Research Center, left-leaning Americans are far more supportive of tax incentives for EVs and hybrid vehicles. For example, 84% of Democrats or left-leaning Americans support EV tax breaks. In contrast, more than half of Republican or right-leaning Americans oppose EV and hybrid tax incentives.
And FiveThirtyEight reports the political stance of Elon Musk has seriously tarnished his image with the blue party. Only 9% of Democratic voters view Musk favorably. On the other hand, about 63% of adult Republicans say they view the billionaire positively. PCMag reports influential Tesla shareholders feel it’s time for Musk to step down as CEO of the EV maker. KoGuan Leo, the third-largest individual shareholder in the company, said Musk abandoned Tesla in favor of Twitter.
One thing is sure, Musk’s decision to draw party lines is bad for Tesla’s business. And, though CNN reports more Republicans are considering Teslas, the company’s sales have taken a massive hit recently.
