Tesla has reported its first-ever annual decline in sales for 2024, a downturn attributed to CEO Elon Musk's controversial political associations. The decline in sales is notably pronounced in Germany, where Tesla experienced a staggering 60% year-on-year drop in January. This reduction has been linked to Musk's public support for the far-right Alternative für Deutschland (AfD) party, raising concerns about the impact of his political stance on the company's performance.
Some commentators have pointed to Musk's right-wing affiliations as a possible factor in Tesla's sales decline. However, there are suggestions that the company might offset the loss of left-wing customers with new supporters from the right. Within Tesla, voices emphasize the separation between the company and its CEO, underscoring that the business operates independently from Musk's personal political views.
In the United States, Musk's association with former President Donald Trump's administration has sparked apprehension among some investors and consumers. There are ongoing discussions about whether this relationship could adversely affect Tesla's sales, particularly in liberal regions. Musk has reportedly invested over $200 million in the presidential election campaign, further entangling him with political controversies.
Protesters have gathered outside Tesla dealerships across the U.S., voicing opposition to Musk's efforts under Trump's presidency to reduce government spending. Although scattered, these protests underscore potential risks to Tesla due to its CEO's alignment with Trump's radical right-wing agenda. Ed Davey, leader of the Liberal Democrats, has even suggested that the Labour government should consider imposing tariffs on Tesla cars in response to the U.S. administration's levies on steel imports.
The financial dynamics of Tesla and Musk's ventures play a significant role in this narrative. Shares in Tesla account for roughly a third of Musk's wealth, according to Bloomberg. The car company's surging valuation has been instrumental in building Musk's fortune, which he leverages to fund other enterprises such as SpaceX and Neuralink.
"There comes a time when you have to decide who you are willing to align with." – Sheryl Crow
This quote resonates amid debates regarding Musk's political affiliations and their repercussions for Tesla. Investors and consumers alike are questioning whether these associations will influence their decisions about supporting the car manufacturer.