New Polls Show Tesla's Brand Is Toxic Beyond Repair
45% Of Americans Less Likely To Buy Tesla Because of Musk
Three new polls this week have revealed Elon Musk and his embattled automaker Tesla (TSLA) are in deep shit.
On Wednesday, Data for Progress published a poll asking U.S. likely voters if Elon Musk has made them less likely to buy a Tesla. 45% of respondents said less likely, while only 17% said more likely.
Data for Progress also asked for opinions of Elon Musk himself, and the results almost perfectly lined up with views on buying a Tesla, with 50% unfavourable towards the South African oligarch and 42% favourable, or -8% net rating. Meanwhile Pew also published a poll on Wednesday asking Americans about Elon Musk, and the results weren’t any better for the tubby Apartheid-born tech CEO with 54% unfavourable and 42% favourable, or a -12% net. The Washington Post added to the mix on Thursday with another poll showing 49% disapprove of his role in government, while 34% approve, or a -15% net.
Notoriously intertwined, the polling stories for both Elon and Tesla are essentially the same. Their favourability ratings are cratering amongst liberals and independents, and the gains amongst conservatives are not making up for those losses. And there is an enormous intensity gap across the political spectrum. Independents hate Tesla, and liberals loathe Tesla, but conservatives don’t love Tesla. They merely tolerate it.
Tomorrow Will Be Worse
And as bad as this week’s numbers are for Tesla, they’re likely to get much worse. Elon’s political career has only just started. And very few political figures leave office more popular than when they entered. Musk also seems poised to attempt cuts in social welfare programmes like Medicare and Social Security, which are popular across the political spectrum. He also holds some positions - most notably on skilled immigration - that put him directly at odds with the MAGA faithful.
By the time it’s over Elon’s meddling in politics is unlikely to be popular with any group of Americans, not even die hard MAGA conservatives. There is a reason why the U.S. Congress’ approval rating typically hovers between 15% - 25%. As the body that determines where and how tax dollars are spent, it gets blamed for every grievance in America. As Musk’s DOGE illegally usurps Congress’ constitutional power of the purse, his approval rating - and that of his flagship company - will likely end up in Congress’ range.
And it’s difficult to imagine a mass-market consumer company thriving or even surviving in a market where the pool of potential customers is limited to only 15% of the population, many if not most of whom prefer a competitor’s product for entirely non-political reasons. Tesla is well on the road to a future where 100% of light vehicles sold in the United States are EVs, and Tesla has an abysmal 0.5% market share.
Worse for Tesla investors, none of the possible solutions to this existential problem seem to be on the table. Elon is showing no signs of stepping back from politics, stepping down as CEO of Tesla, selling his Tesla stake, or moderating his political views to appeal to a wider set of customers. And all of the new revenue sources touted by Musk are either illusory, or - like the purported “Robotaxi” - are also dependant on consumer sentiment.
Elon has aimed Tesla directly for a cliff, accelerated to 150mph and - contrary to the hopeful delusions of Tesla investors - he will not brake.
Disclosures: None