Could Elon Musk's endorsement of Donald Trump hurt Tesla stock?
- by Firstpost
- Jul 24, 2024
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A new survey by analytics firm CivicScience shows Tesla’s favourability with Democrats – who comprised 40 per cent of the Tesla buyers for model years 2023 and 2022 – has dropped to 16 per cent last week from 39 per cent in January. Some say Elon Musk’s tilt toward right-wing politics and polarising public statements have alienated his core buying base, but others point out that Tesla’s stock value has long been based on future expectations
Meanwhile, Republicans aren’t exactly flocking to purchase Tesla’s EVs.
In 2022, Republicans accounted for 29 per cent of purchases of Tesla EVs – which rose to 32 per cent in 2023.
Visitors check a Tesla Model 3 car next to a Model Y displayed at a showroom of the US electric vehicle (EV) maker in Beijing, China. According to the firm, it sold 3,69,784 Model 3 compact cars and Model Y SUVs between January and March, and 17,027 other EVs. File image/Reuters
Independents, interestingly, bought Tesla EVs in droves in 2023 – accounting for 44 per cent of all sales compared to 28 per cent in 2022.
Now, new reporting from Yahoo Finance shows that Tesla has become even less popular with Democrats.
The outlet cited data from analytics firm CivicScience as showing that Tesla’s favourability numbers among Democrats dropped to 16 per cent last week.
That number was at 39 per cent in January.
CivicScience told Yahoo Finance its survey results consistently show “that Democrats, more closely than Republicans, associate Elon Musk and his actions with the brand."
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Alarmingly for Musk, Tesla’s favourability ratings among Republicans also dropped from 35 per cent to 23 per cent.
Meanwhile, California’s registrations of the Tesla’s Model Y fell 17 per cent in the first quarter of 2024 compared to the first quarter of 2023, as per INC.com.
“Californians’ love affair with electric vehicle giant Tesla may have peaked,” the dealers association said in April as per QZ
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All this comes as Tesla is faces fierce competition globally from Chinese electric-vehicle makers flooding the market with low-priced cars.
On Tuesday, Tesla’s profit sank 40 per cent compared to last year.
Meanwhile, the company’s shares tanked around eight per cent.
The company stock is down around 1 per cent overall this year.
Musk also has to trend to his sprawling empire which includes rocket-maker SpaceX, brain-chip developer Neuralink, and social media giant X, which Musk acquired in 2022.
Formerly called Twitter, the platform has foundered under Musk’s volatile management, shedding most of its value as the company has lost revenue and advertisers.
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