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Demand for Tesla cars is down because of Musk's bad reputation

Apr 3, 2024 11:02 149

Demand for Tesla cars is down because of Musk's bad reputation - 1

In the US, potential buyers of Tesla cars are declining, and this is partly explained by the behavior of the company's founder, Elon Musk. This was written by Reuters referring to a study by the company Caliber, which monitors the business reputation of famous people.

According to the study, the index, which measures the willingness of consumers to consider buying Tesla products (consideration score), fell to 31% in February 2024, compared to two years ago, in November 2021, it was at level of 70%. For comparison, the similar indicator for Mercedes, BMW and Audi is at the level of 44-47%.

According to Caliber, such a drop in the Tesla index is a direct consequence of the deteriorating attitude towards Musk - 83% of Americans tend to associate this company with its founder.

The agency spoke with five more marketing, sociological and automotive experts. They unanimously agree that Musk's public statements and leaning toward increasingly right-wing politics are negatively impacting Tesla's brand and demand.

Other reasons include the economic situation, the lack of affordable models and increasing competition from cheaper rivals such as China's BYD.

„Electric car buyers are increasingly turned off by Elon Musk's behavior and policies, and are now finding viable alternatives to Tesla on the market,” said Ed Kim, president of California-based consulting firm AutoPacific.

The consulting company Brand Finance found that in 2023, Tesla's reputation deteriorated in the US, the Netherlands, France, Great Britain and Australia. No deterioration was recorded in China and Germany.

At the same time, Tesla maintains high loyalty among customers: 68% of car owners of this brand prefer to choose another Tesla model in case of changing the car.