Billionaire Musk is blamed for Tesla losing American customers

A study shows that Tesla’s US sales could have been up to 80% higher if not for the “Musk partisan effect” – a result of billionaire Elon Musk’s divisive political activities.

Billionaire Elon Musk – Photo: REUTERS

According to CNN, a new study by Yale University published on October 28 shows that billionaire Elon Musk ‘s partisan political activities since he acquired Twitter (now X) in 2022 have seriously affected Tesla’s sales in the US.

The results show that Tesla ‘s image , once a symbol of green technology and innovation, is being directly affected by the political statements and actions of its leader.

According to a report by the US National Bureau of Economic Research (NBER), Tesla’s sales in the US from October 2022 to April 2025 could have been 67% – 83% higher, equivalent to 1 – 1.26 million cars, if the so-called “Musk partisan effect” had not appeared.

The study said the billionaire’s political statements and contributions – including $300 million in donations to Republican candidates and his leadership of the Office of Government Efficiency (DOGE) – have turned a large segment of Democrats against Tesla.

The Democratic-leaning customer base that previously accounted for the largest portion of Tesla’s sales is now shifting to other electric and hybrid car brands.

Research shows that competitors’ sales have increased by 17% to 22% thanks to the “Musk effect.”

Since becoming the owner of social network X and expressing his right-wing political stance, Mr. Musk has often caused controversy with his statements attacking the media, Democratic politicians and social liberal movements.

His personal image gradually overshadowed the Tesla brand – which was once considered the choice of those pursuing environmental and progressive values.

However, research shows that public attitudes towards Tesla have improved somewhat as the company focuses on new technology projects such as self-driving cars, robotaxis and humanoid robots.

Tesla board chairwoman Robyn Denholm said in an interview with CNBC that “the outside view of Mr. Musk spending time with the U.S. government has diminished significantly,” suggesting the public is beginning to separate more clearly between his personal and business roles.

The NBER report also said that the influence of the “Musk effect” has hindered California ‘s progress in reaching its goal of 100% zero-emission vehicles by 2026.

The state “would have met its target if not for the impact of Tesla’s sales decline,” it estimated.

In the third quarter of this year, the number of Tesla vehicles registered in California fell 9.4%, bringing the company’s market share in the state to only 46.2% – the lowest level in many years.

Tesla has not yet commented on the report.