Sales are crashing

Tesla customers turn away from “crazy” Musk

(Bild: AFP/ANGELA WEISS)

Tesla boss Elon Musk is acting like a dangerous fan boy of US President Trump and a supporter of right-wing parties in Europe too. This seems to be having an impact on business. Shares and car sales figures are crashing in step: in January alone, 45% fewer Teslas were sold in Europe than a year earlier. Support is also crumbling in the USA.

In the beginning, Tom Blackburn was extremely proud of his Tesla. He bought it in bright red to stand out. That was about ten years ago. But since company boss Elon Musk became heavily involved in US politics, the retired lawyer has been ashamed to drive a Tesla. For the past year, a sticker has therefore adorned the bumper of his red electric car. "I bought this before I realized he was crazy" is written on it - in reference to Tesla boss Musk.

In any case, the 76-year-old from Virginia has vowed never to buy from the e-car manufacturer again. And not just him. Musk's reckless and unpredictable approach to cutting government spending as an advisor to US President Donald Trump is causing a lot of bad blood. Musk is in charge of drastic cost and staff cuts in the federal government. Much of what he is initiating is immoral or illegal in the eyes of his critics.

Musk made Tesla the most valuable car manufacturer in the world
Now the criticism of Musk could also have an impact on his company - and above all on Tesla, a brand that was once praised and celebrated by progressive environmentalists. Musk has been head of Tesla since 2008 and has made the brand the most valuable car manufacturer in the world in terms of market capitalization. Analysts now point out that his political activities could damage the image of the cars. Musk not only exerts great influence on politics in the USA - he also supports far-right parties in Europe, including the AfD, and spreads conspiracy theories on the internet.

"I think he will damage the brand and the business in the long term," says Daniel Binns from Elmwood Brand Consultancy. Tesla needs to "distance itself" from Musk in its marketing - otherwise the company risks losing customers to the competition. "The brand is not aligned with its audience on so many levels, and the market is full of fantastic competitors," says Binns.

Traders point to Musk
Tesla shares slumped nine percent this week due to poor sales figures in Europe. Traders attributed the slump in figures - at least in part - to Musk's unpopularity.

Investors, on the other hand, saw no clear evidence that the billionaire's politics were hurting business. Musk's political activity does pose the risk that fewer consumers will buy Tesla - "but it's still too early to see an impact on the company," says Morningstar equity strategist Seth Goldstein.

Hitler salute scandal
Musk's Hitler salute in front of Trump supporters was not without consequences - even if Musk himself denies that the gesture was a Hitler salute. Cybertruck owner Kumait Jaroje then found a note with the words "Nazi Fuck Off" on his vehicle. The doctor and Trump voter from Boston bought the futuristic Tesla model last year to advertise cosmetic surgery. After being insulted and cut off by other road users, his Cybertruck is now up for sale. "I avoid driving it," says the 40-year-old.

Demonstrators: Empty your camp
According to a survey, around 54 percent of US citizens disapprove of Tesla boss Musk - Democrats are far more critical than Republicans, according to the Pew Research Center. Over the past few days, people in several US cities have protested against Musk in front of Tesla stores. Under the slogan "Empty your stock", the demonstrators called on dealers to sell off their vehicles.

In any case, many Tesla owners feel compelled to justify their cars. Like Margaret Moerchen from the US capital Washington, who describes herself as liberal: "The fact that we drive a Tesla does not mean that we support Elon Musk." Next time she won't be buying a Tesla, said the 45-year-old. Her e-car, which she bought in 2015 to reduce her CO2 emissions, is covered in colorful stickers, including the LGBTQ flag and a sticker that reads: "Long live the e-car, down with Musk".