Tesla Buyers Shun Company Amid Declining Reputation of Musk

Web DeskApril 2, 2024774 min
Tesla Buyers Shun Company Amid Declining Reputation of Musk

According to a survey by market intelligence firm Caliber, the number of potential Tesla buyers in the United States is declining, partly due to CEO Elon Musk’s controversial public persona. Despite Tesla’s strong sales growth last year, the company is expected to report weak quarterly sales soon.

Caliber’s “consideration score” for Tesla dropped to 31% in February, down from its peak of 70% in November 2021. The association between Tesla’s reputation and that of Elon Musk appears to be a significant factor in this decline.

Also Read: Elon Musk Confirms Affordable Tesla Model Launch in 2025

Experts suggest that controversies surrounding Musk’s political views and public statements are negatively impacting Tesla’s brand and demand. Economic concerns, a lack of affordable new models, and increased competition from cheaper rivals are also contributing factors.

While overall electric vehicle sales in the US are expected to rise, Tesla’s sales growth is projected to be modest. Tesla’s performance in its biggest market, California, saw a decline in new car registrations in the fourth quarter of 2023.

Several analysts have lowered Tesla’s target price, anticipating disappointing first-quarter delivery results. Tesla’s shares have also experienced a significant decline this year.

Musk’s controversial remarks and actions, including his political affiliations and comments on social media, have contributed to Tesla’s declining reputation in certain countries. However, in markets like China and Germany, Tesla’s reputation remains strong.

While some consumers are deterred by Musk’s behavior and politics and are exploring alternative EV options, others remain loyal to Tesla. The company maintains high customer loyalty, with many Tesla owners choosing another Tesla when purchasing a new car.

Despite concerns over Musk’s actions, some consumers, like Christian Cook in Texas, are undeterred and continue to support Tesla. Others, like climate activist Kat Beyer in Wisconsin, find it challenging to reconcile their concerns with their desire for an electric vehicle, ultimately choosing Tesla due to a lack of alternatives with reliable charging infrastructure.

Share This Post

News Guru

WEb logo-04 (1)

We strive to bring you the most comprehensive and up-to-date news from reliable sources. Our team of experienced journalists and writers are committed to delivering unbiased and factual news, with the highest levels of professionalism and integrity.

News Guru, 2024 © All Rights Reserved