- A brand new examine exploring Elon Musk’s political activism reveals simply how a lot it is damage Tesla.
- Researchers estimated that at the very least 1 million EV gross sales had been worn out from Tesla’s U.S. deliveries from October 2022 to April 2025.
- Gross sales for different EV makers elevated by as much as 22%.
Tesla CEO Elon Musk’s political crash out has been painful to look at. His public endorsement of U.S. President Donald Trump and spearheading function within the controversial Division of Authorities Effectivity (which was linked to greater than 280,000 layoffs) earned Musk—and Tesla—a damaging fame amongst left-leaning voters within the U.S.
A brand new examine by Yale students at the Nationwide Bureau of Financial Analysis (NBER) reveals simply how a lot of an affect that fame had on Tesla’s gross sales. Because it seems, since Musk purchased Twitter, his political meddling has price Tesla greater than 1,000,000 car gross sales whereas additionally boosting the variety of EVs and hybrids offered by opponents.
Photograph by: White Home
The researchers analyzed EV registration tendencies throughout counties within the U.S. from 2020 till 2025, monitoring gross sales throughout political traces throughout the time-frame. Earlier than 2022, Tesla gross sales had been booming all over the place. However like clockwork, when Musk purchased Twitter in October 2022 and used it as a approach to amplify his “free speech absolutism” and alliance with the Republican social gathering, issues began to go downhill—particularly in blue counties.
In whole, the examine estimates that Tesla would have offered 1 million to 1.26 million extra models between October 2022 and April 2025 within the U.S.—67-83% greater than it did. It immediately attributes that lack of gross sales to Musk’s “polarizing and partisan actions.”
The examine was first noticed by Electrek.
These actions did not simply price Tesla gross sales, both—in addition they gave a lift to the competitors. The examine estimates that gross sales of opponents’ electrical and hybrid automobiles elevated by as much as 22% (1.26 million models), throughout the identical time interval. That is as a result of individuals who did not purchase Teslas flocked to different manufacturers. Remember that that is earlier than the Q3 EV tax credit score increase that introduced report EV gross sales to automakers throughout the board.
Zoom in, and the impact is even better. “By the primary quarter of 2025, we discover that with out the Musk partisan impact, Tesla month-to-month gross sales would have been about 150 p.c increased,” the examine stated.
Photograph by: InsideEVs
The researchers dub this a textbook case of “CEO activism,” however with an exceptionally costly twist. Musk’s political realignment, which included $300 million in marketing campaign donations to Republican candidates, turned Tesla possession right into a political assertion of its personal. And that contributed tremendously to Tesla’s flailing gross sales during the last couple of years. In 2024, Tesla had its first down yr of auto deliveries in over a decade. And it is on observe for one more yr with out progress in 2025.
Polls cited within the examine additionally make it crystal clear that there is a political divide amongst the general public and consumers. Between March 2021 and April 2025, the share of Democrats with a damaging view of Musk elevated from 28% to 92%, whereas these with a optimistic view decreased from 21% to only 4%. Throughout the identical time, Republicans viewing Musk favorably rose from 30% to 75%.
The takeaway? Whereas Tesla may need a difficulty with of us feeling that its automobiles are growing older a bit rapidly, it has different fish to fry too. Tesla’s largest downside could also be that its CEO has warped its as soon as untouchable enchantment amongst world EV manufacturers.
NBER’s paper features a well-known quote from Michael Jordan within the early ’90s that will function a lesson for Musk: “Republicans purchase sneakers, too.” Sadly for Tesla, they’re clearly not shopping for EVs in a manner that makes up for the Democrats which have defected from the model.
