Is Elon the downfall of Tesla?

Question

With Elon's recent racist and controversial actions, will less people buy his vehicles?

Answer 1

While there are a variety of things that may be impacting Teslas's success that are outside of Elon's influence, such as market-wide stock fluctuations and competition in demand for electric vehicles, Elon's actions and words to the public across multiple sites have been proven to have a generally negative impact on Tesla as a business, so this claim is true. An article from InvestorPlace makes a connection between Elon's posts and actions regarding the governing of Twitter and his business choices regarding Tesla stock. His controversial actions have frequently occurred shortly before Tesla's stock begins to suffer, and the article cites that Tesla's stock has fallen 15% since his Twitter takeover. More recently his association with the Trump administration has led to accusations that he is an oligarch, and this has led to nationwide "Tesla Takedown" protests outside of Tesla dealerships across North America. These protests have had also had a negative impact on Tesla's stock.

https://www.nbcnews.com/business/business-news/tesla-falling-stock-resale-value-elon-musk-trump-what-to-know-rcna196497

https://www.npr.org/2025/03/29/nx-s1-5343986/anti-musk-protests-planned-worldwide

https://investorplace.com/smartmoney/2022/11/how-elon-musks-handling-of-twitter-impacts-the-tesla-calculation/

https://www.npr.org/2023/01/06/1146941980/tesla-shares-elon-musk-twitter-electric-cars

Answer 2

By an article "Tesla profits fall by 70% amid Elon Musk backlash"  published by KTLA5 in April 2025 this headline seems to be true. This article states that according to Tesla quarterly profits fell by 70% and their revenue fell 9%. This fall comes directly after Elon Musk publicly supported far-right politicians. 

sources:

https://ktla.com/news/tesla-profits-fall-by-70-amid-backlash-tied-to-elon-musk/

Answer 3

This claim seems to be true from the many articles that I have researched. When Musk started to be affiliated with Donald Trump and the republican party, he received more and more backlash. In an article written by Melissa Eddy and Jack Ewing, published by the New York Times, many people say that they will never drive a Tesla again, and it's a big question of Musk's ethics. Similarly, in an article written by Camila Domonoske and NPR, after many surveys, Musk's controversial political work has tarnished Tesla's reputation, and there have even been protests at Tesla showrooms to show the disapproval of Musk and his recent work.

https://www.nytimes.com/2025/04/02/business/tesla-sales-elon-musk.html

https://www.npr.org/2025/04/22/nx-s1-5371552/tesla-earnings-april-2025-elon-musk-doge#:~:text=Musk's%20controversial%20political%20work%20has,Tesla%20are%20%22paid%20for.%22

Answer 4

Elon Musk's recent controversial decisions have led to a noticeable decline in Tesla vehicle sales. 

In the first quarter of 2025, Tesla reported a 13% drop in vehicle deliveries, marking its lowest figure since 2022. Analysts say this is because of Musk's political affiliations and actions, including his role in the Trump administration. This has also sparked protests against Tesla.

Musk's public support for far right parties have also led to a 60% drop in Tesla sales in Germany because of his support for the AfD party.

breaking headlines

washington post

Answer 5

Yes. There is clear evidence that Musk’s public controversies have dampened consumer demand for Teslas, even as other market forces also play a role. A recent survey by Electrifying.com found that 60% of prospective car buyers say Elon Musk’s controversial reputation actively puts them off purchasing a Tesla. In addition, Reuters reports that used Tesla trade-ins are at record highs amid Musk backlash, with analysts attributing part of this surge to consumers abandoning the brand over his political and social controversies.

Sources:

https://www.electrifying.com/blog/article/elon-musk-is-putting-buyers-off-tesla-survey-reveals?

https://www.reuters.com/business/autos-transportation/tesla-trade-ins-pace-record-high-amid-musk-backlash-2025-03-20/

Answer 6

For this statement I actually believe that this false. Although Tesla has been going down recently Elon has made Tesla a very well known and wealthy brand. Last year the Tesla Model Y was the 3rd most sold car according to Car and Driver a well known car catalog, also Tesla made $21.3 Billion in Revenue just in Q1 of 2024. This was according to The Verge which is a company under VOX. With these statements I have found, I believe although Tesla has taken a 71% fall in the past month this company has done well in previous years and people don't like what Elon has done so they want to try and bomb the company. I think this will take an upturn in the stocks by Q3 of this year.

 https://www.theverge.com/news/653645/tesla-q1-earnings-2025-revenue-profit-elon-muskhttps://www.caranddriver.com/news/g60385784/bestselling-cars-2024/

Answer 7

Elon Musk has had a huge negative impact on Tesla recently as D.O.G.E has had a lot of people upset, as well as Elons general involvement in politics; However, it seems Tesla stock has been way overvalued for many years, and that Elon Musks ability to promise new features and returns, as well as stay relevant in the media has also helped Tesla and overall been a huge reason they maintain such a high stock price. So while I agree this most recent drop and negative effect on Tesla is caused by Elon, he's also the reason that Tesla has the room to fall this much.

https://www.forbes.com/sites/hershshefrin/2025/04/23/tesla-stocks-71-decline-consistent-with-very-low-fundamental-value/

https://www.reuters.com/business/autos-transportation/teslas-stock-defied-gravity-years-is-elon-musks-ev-party-over-2025-03-10/

https://nymag.com/intelligencer/article/elon-musk-return-tesla-value-hurt-or-help.html

Answer 8

In the article https://www.cnn.com/2024/04/07/business/tesla-ev-sales-slowdown-stock/index.html they claim that the decrease in tesla sales was based off of elon musk. In the article they state that there has been a increase in demand for electric vehicle. They showed that many competitors were having a skyrocking increase in EV sales and Tesla wasn't. Using the article https://www.bbc.com/news/articles/cz61vwjel2zo it was proven that this claim is true, with musks rise in politics many people have strayed away from his business. A good point that the article made was that Musk could be spread out so thin, that the lack of focus on tesla could have worsen sales. Overall Musk's tactics and rise in politics has greatly impacted tesla and overall tesla is no longer in the same shape as they were in 2020 when sales were the best. 

Answer 9

Yes, Elon's recent actions have negatively impacted Tesla's brand and sales. His political affiliations and responses to people have been nothing short of terrible and his company is feeling the backlash of his actions. According to Euronews, the likelihood of consumers buying a car is based on a "consideration score," and from November 2021 - February 2024, it has dropped over 40%. Instead of having a public following for how his business is doing, he is using it for his controversial, opinionated stances and not the cars. Furthermore, the market of his customers has flipped from progressive who promote environmental-friendly cars to a smaller, conservative market. According to CBS news, they also state that the brand favorability has fallen drastically. The amount of EV cars has also contributed to the downfall of his own, but his actions have most definitely been a deciding factor as well. 

https://www.euronews.com/business/2024/04/01/potential-tesla-buyers-look-away-as-musks-reputation-plunges?utm_source=chatgpt.com

https://www.cbsnews.com/news/tesla-sales-elon-musk-reputation-brand-damage-trump-doge/?utm_source=chatgpt.com

Answer 10

CNN is always a good place to find information and fact check ideas. When you click on the links it just takes you to another CNN sight which is good.