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“Some Tesla fans are concerned with Musk's actions ”

Roy said he first became concerned when Musk took the role at the Department of Government Efficiency (DOGE). Before Musk took that role, Roy said, he'd been a fan of the billionaire for years.

Other Tesla fans are less concerned about Musk's actions and prefer to separate the company CEO from a product they love.

Gad Elmoznino from Club Tesla Quebec says the company employs thousands of people, not just Musk. He says he won't avoid the brand just because of Musk's actions.

“I’ve seen him do crazy things before that I was not comfortable with. But it really comes down to the product,” he said. He told Global News that he doesn't believe not buying a car will make a difference.

“Let’s face it, me not buying a Tesla tomorrow is in no way is going to affect Musk personally and no way going to change his behaviour.”

A survey by EenVandaag, a current affairs program in the Netherlands, found that 31% of people polled plan to sell their Tesla or have already done so.

Some in the United States are following suit. Grammy-award-winning singer Sheryl Crow posted a video of herself happily waving goodbye to her Tesla after she sold it.

"My parents always said… you are who you hang out with. There comes a time when you have to decide who you are willing to align with. So long Tesla." Crow posted on Instagram. Crow said she donated the proceeds of her car sale to NPR, an organization that Musk has said should be defunded.

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“Is the anti-Tesla movement gaining traction?”

While some believe the anti-Tesla movement won't make a difference, Tesla is facing a number of issues. Tesla company stocks have declined some 25% year to date, and some analysts predict further drops. Sales have also fallen.

However, it’s important to note that Tesla’s sales often fluctuate at the start of the year due to end-of-year marketing pushes. For example, CNN reports that Tesla sales fell 24% in January 2024 compared to December 2023, indicating a typical seasonal pattern rather than an indication of long-term trouble.

Some experts, like Stephanie Valdez Streaty, director of industry insights for Cox Automotive, caution against assuming Musk’s recent controversies are directly impacting sales.

“It’s still too early to see any (Musk backlash) in the Tesla numbers,” Valdez shared with CNN. “We can’t pinpoint that polarization is causing people to buy or avoid a Tesla.”

Another data point suggests a shift in consumer behavior. According to Cox’s AutoTrader, a record 11,300 Teslas were listed for sale on the site during the fourth quarter of last year—a 28% increase from the previous year’s average of 8,800. This could indicate that more Tesla owners are offloading their vehicles, but whether that trend continues remains to be seen.

Beyond public perception, Tesla is also facing increasing competition from legacy automakers like General Motors, Ford and Volkswagen, all of which have expanded their electric vehicle (EV) offerings. These newer models often come at a lower price point and boast features designed to compete directly with Tesla’s lineup.

In Europe, Tesla sales have fallen in nearly every single market, with a year-over-year decline of 47.7%, according to Electrek. However, this drop may be partially attributed to the company’s transition to the newly unveiled Model Y, which has created temporary production and inventory challenges.

Despite these factors, some industry experts believe that many consumers prioritize factors like price and performance over political controversies.

“There’s a huge swath of the population that doesn’t care about politics or it’s not top of mind,” said Ivan Drury, director of insights at car-buying site Edmunds. “A lot of people will put aside their feelings about politics when making a purchase like this and focus on price.”

Only time will tell whether Tesla’s sales slump is a temporary dip or a sign of a more significant shift. While some buyers are distancing themselves from the brand over Musk’s actions, others remain focused on price and performance.

The situation highlights how corporate leadership can influence consumer loyalty — something other brands may be watching closely.

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Danielle Antosz Freelance contributor

Danielle Antosz is a freelance contributor to Moneywise.

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