{"id":8488,"date":"2025-02-24T17:40:01","date_gmt":"2025-02-24T17:40:01","guid":{"rendered":"https:\/\/site.itshrt.com\/worldnews\/as-elon-musk-takes-a-leading-role-with-doge-some-tesla-customers-are-rethinking-their-allegiance\/"},"modified":"2025-02-24T17:40:01","modified_gmt":"2025-02-24T17:40:01","slug":"as-elon-musk-takes-a-leading-role-with-doge-some-tesla-customers-are-rethinking-their-allegiance","status":"publish","type":"post","link":"https:\/\/site.itshrt.com\/worldnews\/as-elon-musk-takes-a-leading-role-with-doge-some-tesla-customers-are-rethinking-their-allegiance\/","title":{"rendered":"As Elon Musk takes a leading role with DOGE, some Tesla customers are rethinking their allegiance"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<\/p>\n<div id=\"\">\n<p>Elon Musk has long been Tesla&#8217;s public face, convincing consumers to pay premium prices for electric vehicles that promised to help combat climate change. But as Musk has navigated toward conservative politics and emerged as a close adviser to President Trump, some Tesla owners say they are reconsidering their loyalty to the brand.<\/p>\n<p>Wall Street analysts worry the Tesla brand is showing some cracks, with sales falling 1% in 2024 from the prior year \u2014 the automaker&#8217;s first annual sales decline in 12 years, even as global EV sales rose 7.3%. They also say Musk&#8217;s political activities risk alienating consumers, while protests have erupted at a number of\u00a0<a href=\"https:\/\/www.cbsnews.com\/sanfrancisco\/video\/rally-held-outside-of-sf-tesla-dealership-to-speak-out-against-elon-musk-doge\/\" target=\"_blank\" rel=\"nofollow\" data-invalid-url-rewritten-http=\"\">Tesla dealerships<\/a> across the U.S. over his proximity to the Trump administration.<\/p>\n<p>&#8220;It would seem that potential consumers for Tesla EVs might be turning away from the company because they don&#8217;t appreciate Elon Musk&#8217;s close relationship to President Trump and the administration&#8217;s tariff policies,&#8221; Mike O&#8217;Rourke, chief market strategist at Jonestrading, told CBS MoneyWatch.<\/p>\n<p>Since Mr. Trump&#8217;s Jan. 20 inauguration, the carmaker&#8217;s stock has dropped 17% due to the &#8220;visible perceived downside impact&#8221; of Musk&#8217;s involvement with the White House, Wedbush Securities analyst Dan Ives wrote in a Feb. 19 research note.<\/p>\n<p>The inextricable link between Musk, the world&#8217;s richest person, and Tesla&#8217;s brand illustrates both the opportunities and risks of tying a company&#8217;s fortunes to the personality of a single executive. Musk has led Tesla from its days as a scrappy startup to the <a href=\"https:\/\/www.motor1.com\/news\/703356\/tesla-sells-more-cars-than-byd-2023\/\" target=\"_blank\" rel=\"nofollow noopener\">world&#8217;s biggest producer of EVs<\/a>, growing its valuation to more than $1.2 trillion, making it one of the world&#8217;s most valuable businesses.<\/p>\n<p>But Musk&#8217;s recent\u00a0<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/elon-musk-germany-far-right-afd-remarks-auschwitz-holocaust-remembrance-day\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">inflammatory public statements<\/a><\/span>\u00a0and his role leading Mr. Trump&#8217;s cost-cutting task force, the Department of Government Efficiency,\u00a0<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/elon-musk-germany-far-right-afd-remarks-auschwitz-holocaust-remembrance-day\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">or DOGE<\/a><\/span>, appear to be turning off some Americans. Consumers&#8217; political leanings can play into their decision to buy an electric vehicle, with Democrats three times more likely to buy an EV than Republicans, according to a 2024 Pew Research Center <a href=\"https:\/\/www.pewresearch.org\/short-reads\/2024\/06\/27\/about-3-in-10-americans-would-seriously-consider-buying-an-electric-vehicle\/\" target=\"_blank\" rel=\"nofollow noopener\">poll<\/a>.<\/p>\n<p>Tesla did not respond to a request for comment about the impact of Musk&#8217;s political activities on the automaker.<\/p>\n<h2>Customer dissatisfaction<\/h2>\n<p>Among the one-time Tesla fans who have had second thoughts is Minah Oh, 40, of Massachusetts, who told CBS MoneyWatch that Musk&#8217;s political activities led her to sell her Tesla Model X, which she had owned since 2015, in October.\u00a0<\/p>\n<p>&#8220;I got it because it was great for the environment, and at the time he was more on the liberal side of politics,&#8221; Oh told CBS MoneyWatch about Musk. But, she added, she felt that Musk by last fall had become &#8220;volatile and turned radically right.&#8221;<\/p>\n<p>Oh also said she was concerned that driving a Tesla could signal to others that she&#8217;s aligned with Musk&#8217;s political opinions.<\/p>\n<p>&#8220;I wouldn&#8217;t want people to think I was a Trumper or that I am associated with Elon, because he is so tied to the brand,&#8221; Oh said. &#8220;I am so happy I sold it, because if I was driving it today, in the current climate I would be so embarrassed.&#8221;<\/p>\n<p>Jake Nickell is another former Tesla owner who has distanced himself from the car company because of Musk&#8217;s evolving reputation. An early EV fan, the Chicago-based entrepreneur bought the first of three Tesla vehicles he eventually purchased, a Roadster sportscar, in 2006.<\/p>\n<p>&#8220;It was super fun to see an electric car company come up and be viable,&#8221; he told CBS MoneyWatch. He sold the car for a profit when it was no longer practical for his growing family, replacing it with a Tesla Model S and later a Model X.\u00a0<\/p>\n<p>But Nickell said he sold the Model X in 2021 because he was unhappy with the vehicle and because of Musk&#8217;s changing public persona. He replaced it with a car from rival EV maker Rivian.<\/p>\n<p>&#8220;We were not happy with how [Musk] was acting on many levels. It was a slow slide. He started getting into the &#8216;bro&#8217; startup culture of cryptocurrency at time, and there were signs that he was sliding into right-wing politics. We didn&#8217;t want anything to do with that anymore,&#8221; Nickell said of why he sold his family&#8217;s Model X.\u00a0<\/p>\n<p>Asked if he&#8217;d ever buy a Tesla again, Nickell responded, &#8220;Absolutely not.&#8221; He&#8217;s now helping his son buy a car and is considering a Toyota Prius or an EV from Volkswagen.<\/p>\n<p>Musician Sheryl Crow is another former Tesla owner who recently distanced herself from the brand, writing in an Instagram\u00a0<a href=\"https:\/\/www.instagram.com\/reel\/DGEf88eBMVX\/?igsh=bnp2aXR1MnM1Nzlq\" target=\"_blank\" rel=\"nofollow noopener\">post<\/a>\u00a0that she sold her vehicle because of Musk&#8217;s recent political activities.<\/p>\n<p>&#8220;There comes a time when you have to decide who you are willing to align with. So long Tesla,&#8221; she wrote, adding that she was donating the proceeds of the sale to NPR because the Trump administration wants to cut its federal funding.<\/p>\n<figure class=\"embed embed--type-video embed--type-content_video is-video embed--float-none embed--size-medium \"><figcaption class=\"embed__caption-container\"><a href=\"https:\/\/www.cbsnews.com\/video\/alarm-over-musk-demands-for-federal-employees\/\" class=\"embed__headline-link\" data-invalid-url-rewritten-http=\"\"><\/p>\n<p>          <span class=\"embed__icon\"><br \/>\n            <svg viewbox=\"0 0 32 32\" aria-hidden=\"true\"><use xlink:href=\"#icon-video\"\/><\/svg><\/span><\/p>\n<p>          <span class=\"embed__headline\">Alarm over Musk&#8217;s latest demands for federal employees<\/span><\/p>\n<p>          <span class=\"embed__video-duration\">04:21<\/span><\/p>\n<p>                      <\/a><\/p>\n<\/figcaption><\/figure>\n<p>Wall Street analysts have voiced concern about the impact of Musk&#8217;s reputation on the company&#8217;s sales. That includes in Europe, where Tesla sales in Germany, a key market, fell roughly 60% last month, according to <a href=\"https:\/\/www.reuters.com\/business\/autos-transportation\/tesla-sees-german-car-sales-plunge-january-2025-02-05\/\" target=\"_blank\" rel=\"nofollow noopener\">Reuters<\/a>.\u00a0<\/p>\n<p>&#8220;Musk&#8217;s DOGE related actions and more powerful alliance with Trump clearly could alienate some consumers to move away from the Tesla brand,&#8221; Ives, who remains bullish on the company&#8217;s prospects, said in his Feb. 19 report. &#8220;There is some momentum around this effort in Europe and pockets of the U.S. as well since November.&#8221;<\/p>\n<p>Tesla&#8217;s &#8220;net favorability rating,&#8221; which measures consumers&#8217; perception of the brand based on survey responses, is at all-time lows, according to Stephen Gengaro, an analyst for investment advisory firm Stifel, who believes that Musk could be hurting the brand&#8217;s score. Researchers asked consumers if they had a &#8220;favorable&#8221; or &#8220;unfavorable&#8221; impression of Tesla, ranging from &#8220;very favorable&#8221; to &#8220;very unfavorable,&#8221; to determine the rating. Respondents could also reply that they&#8217;d never heard of the brand, or that they had no opinion.\u00a0<\/p>\n<p>Tesla&#8217;s favorability rating sank to 3%, a six percentage point decline, for the week ended Jan. 28, compared with 9% in January 2024, according to data from Stifel Think Tank Group, the firm&#8217;s research and analysis arm. In January 2018, the company&#8217;s favorability rating stood at 33%.\u00a0<\/p>\n<p>&#8220;[M]any on the Street view Musk spending &#8216;100% of his time&#8217; with DOGE as creating a negative perception around his Tesla focus,&#8221; Gengaro wrote in a research note. \u00a0<\/p>\n<h2>Partisan divide<\/h2>\n<p>More than half of Americans held a negative view of Musk, according to a Pew Research Center <a href=\"https:\/\/www.pewresearch.org\/short-reads\/2025\/02\/19\/how-americans-view-elon-musk-and-mark-zuckerberg\/\" target=\"_blank\" rel=\"nofollow noopener\">survey<\/a> conducted between Jan. 27 and Feb. 2. Views were starkly divided based on political party, with about 7 in 10 Republicans saying they had a favorable view of him, while more than 8 in 10 Democrats said they viewed him unfavorably.\u00a0<\/p>\n<p>Those changing perceptions may be rubbing off on car buyers, with a February Morning Consult poll finding that about 32% of U.S. buyers &#8220;would not consider&#8221; buying a Tesla, a five percentage point increase compared with a year earlier, according to a recent CNN <a href=\"https:\/\/amp.cnn.com\/cnn\/2025\/02\/17\/business\/tesla-sales-elon-musk-politics\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a>.\u00a0<\/p>\n<p>In states that voted Democratic in the last four presidential elections, the share of repeat Tesla buyers dropped seven percentage points over the past year, falling from 72% at the end of 2023 to 65% by the fourth quarter of 2024, according to additional data provided to CNN by S&amp;P Global Mobility. Repeat buyers in states that voted Republican barely inched higher, rising from 47.6% to 48.2% over the same period.<\/p>\n<p>In California, the country&#8217;s largest market for electric vehicles, total driver registrations for Tesla&#8217;s cars fell 11.6% percent in 2024, according to data from Experian automotive. Registrations for all other brands increased 1.4%, California New Car Dealers Association NCDA wrote in a January\u00a0<a href=\"https:\/\/www.cncda.org\/wp-content\/uploads\/Cal-Covering-4Q-24-FINAL.pdf\" target=\"_blank\" rel=\"nofollow noopener\">report<\/a>.\u00a0<\/p>\n<h2>Could Musk&#8217;s ties to Trump actually help Tesla?<\/h2>\n<p>At the same time, some on Wall Street say there are potential upsides to Musk&#8217;s alliance with Mr. Trump. Perhaps most important, the Trump administration may seek to weaken or eliminate federal rules governing Tesla&#8217;s self-driving vehicle technology, a major initiative for Tesla.\u00a0<\/p>\n<p>Musk has long had ambitions to launch full self-driving vehicles powered by AI. The company plans to launch autonomous ride hailing in Austin in June, Musk\u00a0<a href=\"https:\/\/x.com\/elonmusk\/status\/1889006561541882170\" target=\"_blank\" rel=\"nofollow noopener\">confirmed<\/a>. Yet such efforts have been slowed by federal investigations into vehicle crashes involving Tesla&#8217;s\u00a0<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/tesla-fsd-self-driving-autopilot-elon-musk\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">&#8220;Full Self-Driving&#8221; system<\/a><\/span> and by existing safety regulations.\u00a0<\/p>\n<p>&#8220;Trump&#8217;s election, and the bromance between Trump and Musk, will essentially lead to the defanging of a regulatory environment that&#8217;s been stifling Tesla,&#8221; Ives told the Associated Press.\u00a0<\/p>\n<p>If the Trump administration eases regulations for self-driving cars, it would be &#8220;a significant tailwind for Tesla&#8217;s autonomous and AI vision heading into 2025,&#8221; he added.<\/p>\n<p>Meanwhile, the dip in consumer perceptions of Tesla&#8217;s brand could simply be a short-term headwind, Gengaro said. And long-term, the company&#8217;s development of robotaxis and self-driving vehicles could provide much more of Tesla&#8217;s growth than vehicle sales to consumers, he added.\u00a0<\/p>\n<p>Tesla&#8217;s sales struggles also could be based on other issues besides Musk, including mounting competition for EVs from other automakers. And Tesla&#8217;s sales decline in Germany could be due to a preference among consumers there for electric cars made by homegrown automakers such as BMW, Mercedes-Benz and Volkswagen.<\/p>\n<p>    <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \"\/><!-- tags --><\/p>\n<div class=\"content-author\">\n      <a href=\"https:\/\/www.cbsnews.com\/team\/megan-cerullo\/\" class=\"content-author__name\" data-invalid-url-rewritten-http=\"\">Megan Cerullo<\/a><\/p>\n<div class=\"content-author__bio\">\n<div class=\"content-author__full-information\">\n<p class=\"content-author__text\">Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24\/7 to discuss her reporting.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p><script async src=\"\/\/www.instagram.com\/embed.js\"><\/script><br \/>\n<br \/><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-6606220950177433\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<!-- ItShrt World News -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-6606220950177433\"\r\n     data-ad-slot=\"1882483372\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/tesla-sales-elon-musk-reputation-brand-damage-trump-doge\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Elon Musk has long been Tesla&#8217;s public face, convincing consumers to pay premium prices for electric vehicles that promised to<\/p>\n","protected":false},"author":1,"featured_media":8489,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37],"tags":[703,2298],"class_list":["post-8488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-watch","tag-elon-musk","tag-tesla"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>As Elon Musk takes a leading role with DOGE, some Tesla customers are rethinking their allegiance - World News<\/title>\n<meta name=\"description\" content=\"Elon Musk&amp;#039;s close ties to President Trump is alienating some motorists. 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