A recent Morgan Stanley survey found that most respondents feel that CEO Elon Musk’s political activities are hurting Tesla.
A survey of 245 people found that 85% of respondents believe Mr. Musk’s controversial comments and his efforts on behalf of the Department of Government Efficiency have had a “negative” or “extremely negative” effect on Tesla’s ability to succeed.
Just 3% of respondents felt that Mr. Musk’s political activities had a “positive” effect on Tesla’s business.
Respondents also felt that Mr. Musk’s political activities would hamper sales in 2025. Most respondents, 59%, felt that Tesla would deliver fewer cars in 2025 than last year, with 21% expecting a sales decline of at least 10%.
Only 23% of respondents felt that Tesla would maintain its current delivery rate, and 19% asserted that the company would sell more vehicles in 2025.
The results signal growing frustration among Tesla investors and customers with Mr. Musk, as his political profile grows and Tesla falters.
While the company received a significant boost after President Trump’s election victory in November, Tesla’s stock price has dropped by at least 40% since the start of the year.
Tesla was already dealing with a dwindling EV market share, increased competition and shrinking demand before the election and Mr. Musk’s integration into Mr. Trump’s inner circle.
Tesla has seen steep declines in year-over-year sales, both in the U.S. and Europe, with the company offering significant discounts on its popular models.
While demand and competition have hurt Tesla’s sales, Mr. Musk’s involvement in U.S. and international politics has irritated some consumers. Over the last month, organized protests have terrorized some dealerships in the U.S.
Vandals have also set upon Tesla vehicles, spraying them with graffiti or setting them on fire in some cases.
Additionally, Mr. Musk’s endorsement of Germany’s far-right AfD party has irked some European customers, potentially adding to Tesla’s sales woes on the continent.
Mr. Trump, now a staunch ally of Mr. Musk, has tried to alleviate some investor frustration. On top of declaring that acts of violence at Tesla dealerships would be considered “domestic terrorism,” Mr. Trump hosted a press conference Tuesday showing off several Tesla vehicles. The president also added that he would buy a Tesla in support of Mr. Musk
