Elon Musk's political views 'cost Tesla millions in sales', study finds
Yale University researchers believe the South African billionaire may have cost Tesla millions in lost vehicle sales since voicing his opinions on the social media app he purchased in 2022.
Elon Musk's outspoken political views since purchasing Twitter have dramatically hurt Tesla sales in the US, a study has revealed.
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Yale University researchers believe the South African billionaire may have cost Tesla millions in lost vehicle sales since voicing his opinions on the social media app he purchased in 2022.
A working paper from the National Bureau of Economic Research states the electric car manufacturer's sales would have been between 67 per cent and 83 per cent higher - or between 1 million and 1.26 million vehicles - had it not been for the "Musk partisan effect".
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Since buying Twitter, now rebranded to X, Mr Musk has used the platform to express his hard right-wing opinions on a number of topics from across the globe.
His partisan behaviour has also seen him make $300 million in donations to Republican candidates, while also leading the Department of Government Efficiency (DOGE) under Trump, before being removed from the role after his volatile pubic fall-out with the President in May.
Researchers say these views have alienated Democratic-leaning, environmentally minded buyers, and sent them into the arms of Tesla's competitors, who have seen sales of their electric and hybrid vehicles boosted by roughly 17 per cent to 22 per cent.
Tesla board chair Robyn Denholm said earlier this week that public concern about Mr Musk's involvement in the US government had decreased over time.
Despite this data, Tesla’s third-quarter sales beat Wall Street estimates after several quarters of weak performance.
The firm said it delivered 497,099 vehicles in the third quarter, up 7.4 per cent from 462,890 a year earlier.
The sales boost was powered by US buyers rushing to make use of popular federal tax credits before they expire at the end of September.
"While the third quarter was strong, we expect fourth quarter sales will see a decline, consistent with the first half of the year, largely due to the US tax credit expiration,” said Seth Goldstein, senior equity analyst at Morningstar.
Full-year 2025 deliveries are projected to be about 1.61m, roughly 10% below 2024, according to investment research firm Visible Alpha.