Tesla Sales Plunge as Musk's Political Views Spark Backlash

Elon Musk's Political Views May Be Hurting Tesla Sales

Elon Musk's outspoken political views may be hurting Tesla sales, according to some experts. The company's stock has dropped 37% since Inauguration Day, a loss of $550 billion in investor wealth.

Tesla sales plunged 45% in Europe in January, even as overall electric vehicle sales rose. This comes after a report of falling sales in California, its biggest U.S. market, and the first annual drop globally for the company last year.

Some Tesla owners say they are no longer interested in buying the company's cars because of Musk's political views. One owner, John Parnell, said he is cancelling his order for the Cybertruck and will no longer drive his Model 3. "He's destroying the brand with his politics," Parnell said.

Car industry analysts say it's too early to say for sure how much damage Musk is causing to Tesla, but they believe his political comments are reckless. "Musk thinks he can say anything he wants to and doesn't think Tesla will suffer any consequences," said Morningstar analyst Seth Goldstein. "Tesla was in the sweet spot. Now it has competition."

Tesla investor Ross Gerber says Musk has somehow managed to marry the world's best product with the world's worst marketing. "People want to buy stuff that makes them feel good, you don't want politics involved," Gerber said. "It's even worse when you have such divisive issues, whether it's firing climate scientists or taking aid away from starving African children."

Boycotts have a habit of fizzling out, but some experts believe that Tesla's stock is a good indicator of the company's prospects. As of Friday, it has dropped 37% since Inauguration Day, a loss of $550 billion in investor wealth.