Musk's politics may boost Tesla sales in Republican areas

Elon Musk's increasing involvement in conservative politics has created mixed feelings about Tesla's future sales. Some analysts are worried that this engagement may drive some customers away. However, a notable firm, TD Cowen, suggests that his political stance might actually help the company's sales in the long run. Analyst Itay Michaeli pointed out that two of three models analyzed predict a rise in Tesla sales after Musk's political activities. This is because Tesla could gain customers in more Republican-leaning areas, potentially balancing out losses in more Democratic regions. Michaeli acknowledges concerns about Tesla's brand being affected by political divisions but believes that gaining ground in conservative markets may lead to significant sales increases. Recently, Tesla's stock has faced challenges, falling sharply over the past eight weeks, the worst ongoing streak on record. Shares dropped more than 44% since early 2025. There have also been reports of vandalized Tesla cars, which have attracted attention from former President Donald Trump, who condemned such acts and expressed support for Musk. Despite potential short-term issues, Michaeli projects that Tesla could add over 100,000 sales in the long term, assuming electric vehicle adoption grows in conservative areas. Still, many investors see Musk's political activism negatively impacting the business, with a recent survey indicating that most believe it harms Tesla's fundamentals. Another analyst mentioned that concerns about vandalism might deter potential buyers, showcasing the mixed outlook for the company. Overall, while there are many uncertainties, most Wall Street analysts maintain a positive outlook on Tesla, suggesting that its shares may rebound significantly over the next year. Recently, Tesla's stock saw a modest increase of over 2%.