Economists Figure Out The Cost To Tesla Of Elon Musk’s Remarks And Actions

A recent Yale University study found that Elon Musk’s political statements have significantly impacted Tesla car sales in the U.S. in a measurable way.

Between October 2022 and April 2025, Tesla sold between 1 and 1.26 million fewer vehicles than it would have sold if its charismatic CEO had not become a politically polarizing figure, according to those calculations.

A study from the National Bureau of Economic Research indicates that Tesla’s US sales could have been 67% to 83% higher if Elon Musk hadn’t aligned himself with Republican and right-wing politics. This phenomenon, termed the “Musk partisan effect,” shows how one person’s political statements can impact the market perception of a global brand.

Musk, as a reminder, donated $300 million to Republican candidates during the 2024 election campaign, abruptly ending Tesla’s long-standing affinity with the Democratic Party and its more moderate energy transition policies. He further stirred up controversy when he accepted an advisory role in Trump’s new “Ministry of Government Efficiency” (DOGE) and publicly supported right-wing movements in Europe, including the German AfD party.

The outcome was expected, as some loyal left-wing and eco-conscious buyers shifted to competitors. The same study found that brands like Ford, Hyundai, Toyota, and Volkswagen saw electric and hybrid vehicle sales rise by 17 to 22 percent, likely due to Musk’s political shift.

The study also warns of broader consequences. The decline in sales of Tesla’s electric models has slowed California’s progress toward its goal of zero emissions by 2026, as Tesla plays a key role in the electrification of the state’s fleet. However, the authors say that public perception improved somewhat in 2025, when Musk refocused on technology—the development of autonomous vehicles, robo-taxis, and humanoid robots—and temporarily stopped sending political messages.

Despite everything, Tesla’s global sales figures remain under pressure. Based on the results so far, sales are expected to decline by another ten percent this year.

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