Decline in Tesla Buyer Interest Linked to Elon Musk Image, Survey Finds

A recent survey by market intelligence firm Caliber indicates a decrease in the number of potential Tesla buyers in the United States, partly attributed to CEO Elon Musk’s polarizing persona.

Factors Contributing to Decreased Consideration for Tesla:

While Tesla has maintained strong sales growth, factors such as Musk’s controversial statements and right-wing politics, economic concerns, and increasing competition are impacting consumer interest in the brand.

Caliber’s “consideration score” for Tesla dropped to 31% in February, down from its peak of 70% in November 2021, indicating a significant decline in consumer interest in the brand.

Associations Between Tesla’s Reputation and Elon Musk:

The survey shows strong associations between Tesla’s reputation and Elon Musk, with 83% of Americans connecting Musk with the Tesla brand.

Controversies surrounding Musk’s public statements and political views are seen as contributing to Tesla’s reputational downfall and decreasing demand for its vehicles.

Economic Concerns and Rising Competition Affecting Tesla’s Sales:

Economic fears, lack of affordable new models, and increased competition from cheaper rivals like China’s BYD are also cited as factors putting pressure on Tesla’s sales.

While overall electric vehicle sales in the U.S. are projected to increase, Tesla’s sales are expected to grow at a slower pace, reflecting the broader slowdown in the EV market.

Challenges in Tesla’s Biggest Market: California:

Tesla’s sales in California, its largest market in the U.S., saw a decline in the fourth quarter of 2023, signaling challenges despite the overall rise in EV sales.

Several analysts have reduced Tesla’s target price amid concerns of disappointing first-quarter delivery results, leading to a decline in Tesla’s shares.

Musk’s outsized personality, which once benefited Tesla, is now seen as a potential liability as controversies and public statements impact the company’s growth trajectory.