Elon Musk’s recent foray into right-wing politics poses significant risks to Tesla, potentially alienating customers and investors. Tesla’s latest annual report to investors outlines numerous threats, yet barely addresses Musk’s political involvement, which experts argue is deterring potential buyers. “It’s marketing 101: Don’t involve yourself in politics,” said brand consultant Robert Passikoff. Tesla sales plummeted 45% in Europe in January, despite rising overall electric vehicle sales, following declines in California and globally last year. Model 3 owner John Parnell, a Democrat from California, expressed dissatisfaction, stating, “He’s destroying the brand with his politics,” and canceled his Cybertruck order. Industry analysts caution it’s premature to attribute Tesla’s struggles solely to Musk’s politics, citing factors like the upcoming Model Y update and increased competition. Nevertheless, Musk’s comments remain reckless. Sales in Germany and France dropped approximately 60% in January, with further declines in February. Jato senior analyst Felipe Munoz noted a segment of the population disapproves of Musk’s views. Traditionally, Tesla attracted wealthy, environmentally-conscious liberals, but Musk’s $270 million contribution to Donald Trump’s campaign and inflammatory remarks have sparked backlash. Protesters have targeted Tesla showrooms, and boycott calls have emerged, including from a Polish government minister. Despite this, some owners, like Londoner Harry Chathli, remain loyal, praising Musk’s vision. However, Tesla’s stock has dropped 37% since Inauguration Day, reflecting deteriorating prospects. — news from The Associated Press
