Musk's political actions hurting Tesla's sales and reputation

theweek.com

Elon Musk's political actions are reportedly hurting Tesla. Many analysts suggest he cannot effectively run the company and maintain his political role. Sales of Tesla vehicles have dropped significantly; in Australia and Germany, sales are down over 70%. Overall European sales have fallen by 45% compared to last year. Tesla's share price has also fallen by half, and protests are occurring outside showrooms. Musk's controversial behavior, which includes attacking government officials and supporting extreme political groups, has damaged Tesla's reputation. Some loyal customers now express their frustration by putting stickers on their cars saying they bought them before realizing Musk's behavior. The electric vehicle market is becoming more competitive. Chinese companies are offering cheaper alternatives, adding to Tesla's challenges. Analysts believe Musk’s actions have made the once-desirable Tesla brand appear "toxic." Moreover, European governments are considering alternatives to Musk's Starlink satellite system, which indicates a broader backlash against him. Musk's public persona as a visionary leader, capable of achieving anything, is suffering. His recent decisions, like cutting government services, are seen as risky and could risk his influence. Many worry that he is losing control over how the public perceives him and his companies.


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