‘Major brand worries': Just how toxic is Elon Musk for Tesla?

Core Viewpoint - Tesla's brand and sales are increasingly affected by Elon Musk's political affiliations and actions, leading to a significant decline in electric vehicle registrations in Germany and raising concerns about the company's future performance [2][3][4]. Sales Performance - Tesla's electric car registrations in Germany fell by 76% to 1,429 units last month, while overall electric vehicle registrations increased by 31% [2]. - In 2024, Tesla's sales dropped to 1.79 million, marking the first sales decline since 2011 [5]. - Analysts expect Tesla to sell over 2 million cars in 2025, but this would not represent a strong recovery compared to previous growth rates [6]. Market Perception - The proportion of new vehicle buyers considering Tesla has decreased from 22% to just under 8% since Musk's acquisition of Twitter [10]. - The percentage of potential buyers who would not consider Tesla rose from 39% to 63% during the same period [10]. - Among Tesla owners, the percentage identifying as Democrats has fallen from 40% to 29%, indicating a shift in the brand's consumer base [11]. Brand Image and Activism - Activists have targeted Tesla, with protests and campaigns highlighting Musk's political stance, which some believe is damaging the brand's image as an environmentally friendly option [4][12]. - Analysts express concern that Musk's political involvement may alienate Tesla's core customer base, traditionally associated with liberal values [14]. Future Outlook - Some analysts remain optimistic, suggesting that Tesla's share price could rise significantly, while others warn of a potential decline due to Musk's political associations [7][8]. - Tesla's market share in the UK has decreased from 14% to 11% in early 2025, indicating increased competition from new electric vehicle models [19]. - In China, Tesla's sales of locally made EVs dropped by 49% year-on-year in February, reflecting pressure from cheaper competitors [20].