Musk’s Political Transformation
Once a widely supported innovator genius, Tesla CEO Elon Musk has made numerous enemies in recent years due to his controversial political positions and associations.
Moreover, new research has confirmed what many have long suspected: this politics has cost Tesla billions of dollars in lost sales revenue.
Scale of Losses
Tesla’s car sales in the US fell by 1-1.26 million between October 2022 and April 2025, according to the National Bureau of Economic Research, a group of economists from Yale University.
The study’s authors estimate that Tesla’s sales during this period should have been 67-83% higher. Some dissatisfied potential buyers switched to competing automakers, whose sales of electric and hybrid vehicles increased by approximately 17-22% as a result, the study claims.
Among the actions that outraged Tesla’s traditionally Democratic customer base was his $300 million donation to Republican candidates ahead of the 2024 presidential election.
Further controversy arose when Musk accepted a position in Donald Trump’s newly created Government Efficiency Department and expressed support for far-right political parties abroad, including Germany’s AfD.
Together, these decisions reshaped his public image and deepened the rift between his business ventures and his once-loyal fan base.
The study suggests that Musk’s behavior and its impact on sales have negatively affected California’s efforts to achieve zero emissions, derailing plans to meet 2026 targets.
Possible Partial Recovery
However, researchers note that public opinion about the Tesla CEO has improved since Musk shifted focus from Donald Trump back to technology, particularly robotaxis, autonomous vehicles, and his new robotics business.
Global Tesla sales are still projected to fall by approximately 10% this year, but this hasn’t slowed Musk’s ambitions. He is now seeking a compensation package worth $1 trillion, which shareholders are to vote on next month.
Tesla Board Chair Robyn Denholm wrote a warning to shareholders that Musk might leave if the money doesn’t come through.
This study points to the importance of separating the personal political beliefs of leadership from corporate identity, especially for mass-market oriented companies. The impact of Musk’s political statements on Tesla’s business demonstrates how modern consumers increasingly consider the socio-political positions of brands when making purchasing decisions. The further evolution of Musk’s public image and his return to technology topics could be a decisive factor in restoring consumer and investor trust.