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Yale Study Quantifies How Much Elon Musk’s Politics Have Cost Tesla

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observer.com
3 hours ago
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A Yale study suggests that Tesla's declining sales and market share are linked to the increasingly partisan political behavior of CEO Elon Musk. The research, which analyzed county-level data on vehicle registrations and voting records, indicates that Musk's actions have alienated Tesla's traditional customer base, which has historically leaned Democratic and environmentally conscious. The study posits that Tesla would have sold between 1 million and 1.26 million more cars in recent years if not for Musk's perceived political partisanship. This trend became more pronounced after Musk acquired X (formerly Twitter) in 2022 and subsequently became involved in the 2024 U.S. presidential election and headed the Trump administration’s Department of Government Efficiency. Researchers estimate that Musk's partisan behavior led Tesla to lose between 67% and 83% of its potential car sales between October 2022 and April 2025, with a staggering 150% loss in the first quarter of 2025 alone. Musk himself has acknowledged customer backlash, noting that his role in DOGE had "confused" some customers and announcing plans to reduce his time with the agency. Furthermore... download the app to read more
, the study found that Musk's political activities have not benefited competitor electric vehicle (EV) manufacturers, suggesting his actions have negatively impacted the entire EV market. In California, a key state for EV adoption, progress towards zero-emission vehicle sales goals has stalled, with the study estimating a significant shortfall in EV sales due to Musk's influence. The researchers concluded that the study underscores the profound impact a CEO's partisan actions can have on a company.

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