Elon Musk’s recent behavior, including a gesture that resembled a Nazi salute, has sparked widespread criticism and outrage, leading to a significant backlash against his company, Tesla. The backlash has resulted in vandalism of privately owned Teslas, with some high-profile individuals, such as Sheryl Crow, selling their Tesla vehicles due to the company no longer aligning with their values. In Europe, where electric vehicles (EVs) make up almost 40% of new car sales, Musk’s behavior is pushing buyers to opt for alternative brands, such as Jeep, which has seen a significant increase in sales. In fact, Jeep sold 9,935 EVs in January, compared to Tesla’s 7,517. Even Mazda sold 400 more cars than Tesla.
The data is from just one month, but it’s a concerning trend for Tesla, as the company faces an increasing challenge in retaining customers and staying afloat. If Musk’s behavior continues to spark outrage, buyers may boycott the brand altogether. The situation is particularly dire in Germany, where 71% of adults have a negative opinion of Musk and 73% find his involvement in German politics unacceptable. As the EU is a large market for EVs, it will be interesting to see if Tesla’s reputation continues to decline, potentially resulting in the company being “iced out” of the market. In contrast, Musk may still have enough support among his “fan boys” in America to maintain sales.