A Boon for Competitors...
Rival Sales Rise by 17% to 22%
A study has found that Tesla sales have dropped by as many as 1.26 million units over the past two and a half years due to the political activities of Elon Musk, CEO of Tesla.
On October 28 (local time), Reuters reported this, citing a research report from the National Bureau of Economic Research at Yale University.
According to the study, if the so-called "Musk partisan effect" had not occurred, Tesla's sales from October 2022 to April 2025 would have been 67% to 83% higher. This means that approximately 1 million to 1.26 million more vehicles could have been sold.
Musk's actions have reportedly benefited competitors. As buyers with Democratic leanings chose vehicles from other manufacturers instead of Tesla, sales of competitors' electric and hybrid vehicles are estimated to have increased by about 17% to 22%.
The Yale research team analyzed that these results are related to Musk's political activities, such as donating to the election campaign of U.S. President Donald Trump and participating in the Department of Government Efficiency (DOGE). Musk acquired Twitter (now X) in October 2022 and served as the head of the Department of Government Efficiency in the Trump administration until the end of April this year.
According to a survey cited in the report, Musk's political stance has caused Tesla's former core customer base-Democratic supporters who are interested in environmental issues-to distance themselves from the brand.
However, the study found that Musk's recent pivot toward robotaxis, autonomous driving technology, and robotics at Tesla, as well as his distancing from the Trump administration, have somewhat improved his evaluation. Tesla Chair Robyn Denholm also said in a CNBC interview the previous day that "the perception that Musk spends significant time on U.S. government-related activities has diminished."
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