A recent study has unveiled a startling correlation between Elon Musk’s political activities on Twitter and a significant drop in Tesla’s vehicle sales. Since Musk’s acquisition of Twitter in 2022, Tesla has reportedly lost over 1 million vehicle sales in the U.S. market alone. This downturn, according to research conducted by Yale University, is directly attributed to consumer backlash against Musk’s outspoken political stances. This marks a significant shift for Tesla, a company that was once seemingly immune to such external factors in the electric vehicle (EV) space.
Elon Musk’s Acquisition of Twitter
Elon Musk’s $44 billion purchase of Twitter on October 27, 2022, marked a significant shift in his public persona. The acquisition, which led to the platform being renamed X, signaled the start of Musk’s deeper involvement in public discourse. This move closely linked Musk’s personal brand to controversial online behavior, which began influencing perceptions of Tesla shortly after the acquisition. The market reactions to the buyout were immediate, with early dips in Tesla stock tied to concerns over Musk’s divided attention.
The Yale Study’s Methodology
The Yale study adopted a comprehensive approach, analyzing U.S. EV sales data from 2022 onward and correlating drops in Tesla demand with spikes in Musk’s political Twitter activity. The researchers utilized consumer surveys and sales figures from major rivals to quantify backlash, focusing on the period since Musk’s Twitter acquisition. The study’s claim that Musk’s politics directly cost Tesla over 1 million sales in the U.S. is based on econometric modeling of market share changes.
Tesla’s Sales Decline in the U.S.
The figure of 1 million lost car sales for Tesla in the U.S. since Musk bought Twitter is significant. This decline is attributed to alienated progressive buyers in key states like California. Quarterly sales data shows Tesla’s market share erosion from 2022 to 2025, with specific drops following high-profile Musk tweets on political topics. This decline is in stark contrast to broader EV market trends, where Tesla’s U.S. sales fell despite overall sector growth.
Boost to Electric Vehicle Rivals
While Tesla’s sales suffered, Musk’s actions inadvertently boosted rivals’ sales by 22% in the U.S. Brands like Rivian and Ford benefited from shifted consumer preferences. Specific models, such as the Ford Mustang Mach-E, gained traction in regions where Tesla loyalty waned post-Twitter acquisition. The study ties this 22% uplift directly to negative sentiment toward Musk’s political foray, redirecting buyers to less controversial alternatives.
Musk’s Political Engagements and Backlash
Since 2022, Musk has made several key political statements on Twitter, including endorsements and criticisms that drew widespread media attention. Consumer reactions to these statements have been largely negative, with surveys in the Yale study showing a drop in Tesla purchase intent among Democrats and independents in the U.S. Musk’s ambitions, such as reported ties to political figures, have been directly linked to the study’s finding of a million lost sales for Tesla.
Implications for Tesla’s Brand and Future
The loss of 1 million sales has significant implications for Tesla’s valuation and growth projections in the U.S. EV market through 2025. The study’s recommendations suggest potential strategies for Tesla to mitigate political fallout, including separating Musk’s personal views from the brand. While the million-unit figure is U.S.-specific, similar trends elsewhere could have long-term effects on global sales.
More from MorningOverview