Elon Musk’s Unpopularity: A Threat to the EV Industry’s Future?

Elon Musk's Unpopularity: A Threat to the EV Industry's Future?

Elon Musk’s reputation among U.S. liberals has become so contentious that it is affecting their interest not just in Tesla but in electric vehicles (EVs) as a whole. Recent research reveals a surprising link between perceptions of Musk and consumers’ willingness to purchase Teslas compared to other EVs.

This insight comes from a study published in the journal Nature, which analyzed attitudes from November 2023 to March 2025. Participants were asked if they would consider buying a Tesla or an unspecified EV, and the results showed a notable shift in liberal buyers’ preferences.

1. The Polarizing Influence of Elon Musk

According to the researchers, “Liberals showed declining intentions to purchase Teslas compared with other EVs, and, to a lesser extent, declining intentions to purchase EVs in general.” This trend aligns with Musk’s evolving public persona, which appears to have edged toward more conservative viewpoints.

2. A Timeline of Controversy

The study covers significant events in Musk’s political foray, including his endorsement of Donald Trump on July 13, the very day of an assassination attempt against the former president. Musk tweeted, “I fully endorse President Trump and hope for his rapid recovery,” marking a turning point in his public image.

3. Musk’s Political and Business Moves

Subsequently, Musk invested $277 million to support Trump and other Republican candidates. His involvement extended to a controversial canvassing operation that faced allegations of harsh working conditions.

4. Repercussions on Tesla Sales

Following Trump’s victory in November 2024, Musk was appointed to lead the newly created Department of Government Efficiency (DOGE). His leadership saw significant budget cuts across federal agencies, which some health experts estimate led to over 90,000 deaths worldwide due to cuts to vital health programs.

5. The Impact of Liberal Sentiment on EV Demand

Although Musk eventually distanced himself from Trump, the damage to his reputation with liberal consumers was significant. The study indicates that as negativity towards Musk grew, so did the “Tesla backlash effect.” This trend is particularly concerning, as conservative interest in EVs remains low, making it challenging for Tesla to attract new buyers.

Earlier this month, reports showed that Tesla’s car sales plummeted 13% year-over-year in Q2. Furthermore, Tesla stopped taking new orders for its Model S and Model X in Europe, underscoring ongoing challenges in the market.

6. Can a CEO’s Image Hurt Their Brand?

The researchers found that liberal participants were increasingly less supportive of EVs in later surveys, especially when negative feelings toward Musk were expressed. This suggests a polarizing CEO can impact not just individual businesses, but an entire industry.

What are the implications of Musk’s controversies for electric vehicle sales? As perceptions of this high-profile figure shift, potential buyers are reconsidering their options in the EV market.

How does public perception of CEOs affect consumer brand loyalty? A negative public image can lead to a significant decline in loyalty and trust, influencing purchase decisions across various demographics.

Have electric vehicles lost their appeal to liberals? Yes, the evidence suggests that many liberals are turning away from Teslas and EVs altogether due to Musk’s political ties and controversy.

What factors might improve Tesla’s sales in the future? Rebuilding trust among liberal customers and appealing to conservative buyers could be key strategies for improving sales.

As the landscape for electric vehicles continues to evolve, the future of Tesla will likely depend on how Musk navigates his public persona and the political landscape.

Explore more insights and analyses on related topics at Moyens I/O.