Analysts at major financial firms haven't taken a rosy view when predicting future Tesla sales, but the brand is still attracting drivers who refuse to get caught up in the political fray.
As The New York Times reported, J.P. Morgan analysts estimated last month that Tesla would deliver fewer vehicles in the first quarter than it had in three years.
That prediction didn't prove to be true if the analysts included 2022's Q1 results — a record at the time, per Electrek — in the calculations. However, the automaker still fell short of expectations, experiencing a 13% year-over-year dip.
Alexander Edwards, president of automotive research and consulting firm Strategic Vision, suggested to the Times that Musk's political involvement was likely having a much bigger impact on the brand than some believed.
"When you make your product unattractive to half the market, I promise you, you won't increase your sales," Edwards said, adding that lagging sales "are mostly, if not completely, attributed to the statements and behavior of Elon Musk."
While other experts have also cited increased competition in the electric vehicle market and recalls of Tesla vehicles because of safety issues as among the factors contributing to the drop — and Tesla is hardly the first automaker to find itself in the crosshairs of politics, per the Times — Musk's polarizing role as an adviser in the federal government has indeed damaged the Tesla brand.
Nearly half of people surveyed by Yahoo News and YouGov said they disapproved of Musk's approach to slashing federal spending as the de facto head of the Department of Government Efficiency, with 52% believing "he is mostly trying to help himself" rather than the country. And 37% said Musk was at least part of the reason they would never consider owning a Tesla.
"People can love their Hyundai, GM, Rivian or BMW just as much," Edwards told the Times, suggesting that Musk's actions made it easier for people to turn to other automakers.
However, Tesla is also attracting a new group of buyers, including a growing number of Republican and independent voters as well as consumers who appreciate the automaker's product and don't see vehicle purchases as a political statement, according to the Times.
"Elon's not perfect, and Tesla's not perfect, but it's a community of dreamers and doers," said Josh Anders, a 44-year-old creative director of a Christian nonprofit music and arts organization who said he leans conservative. "... I don't need every company to share my beliefs. I just need them to share a commitment to progress."
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Cost 💰 Anders also said "owning a Tesla was one of the best decisions I ever made," citing its minimal maintenance needs, technology, and energy efficiency.
Drivers of EVs — regardless of the brand — also enjoy reduced fuel costs, as EV charging is significantly more cost-effective than filling up on gasoline. They can feel good, too, knowing their commutes aren't releasing asthma-linked, heat-trapping pollution into the atmosphere.
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