Is Musk Coming in the Way of Tesla’s Sales Growth?

Tesla CEO Elon Musk’s reputation has been significantly tarnished by his online outbursts, which could negatively impact Tesla’s sales, Reuters Reports.

In a new survey by marketing analytics firm Caliber, provided exclusively to Reuters, the “consideration score” for Tesla fell to 31% in February, less than half of the 70% in November 2021 when Caliber began tracking consumer interest in Tesla.

The score fell eight percentage points in January itself, while Audi, BMW and Mercedes-Benz rose to the 44%-47% range, Reuters noted. And according to Caliber, Tesla’s reputation may be the reason for the low marks with its CEO.

2024 Tesla Model S – Courtesy of Tesla, Inc.

“Musk himself is likely contributing to the decline in reputation,” Caliber CEO Shahar Silbershatz told Reuters in an interview, noting that 83% of Americans polled associate Musk with Tesla.

Tesla maintains sales momentum through 2023, but is expected to post lower quarterly sales as early as Tuesday. Research firm Cox Automotive is predicting slower growth for Tesla than the overall market. Cox estimates US EV sales growth at 15% in the first quarter, compared to 3% growth for Tesla over the same period.

More than a third of US EVs Sold in California—and 1 in 8 EVs sold globally by Tesla—are sold there—but Tesla registrations in the state are on the decline through the end of 2023. Tesla’s share of overall US EV market shrinks in 2023-Despite the price cuts.

2024 Tesla Model Y.  - Courtesy of Tesla, Inc.

2024 Tesla Model Y. – Courtesy of Tesla, Inc.

The correlation between the timing of Tesla’s market-share erosion and the general public’s growing impatience with Musk is not equally causal. And as an EV-only automaker, Tesla is well ahead of the competition.

at 6 million EVs soldNo other startup has achieved what Tesla has achieved since the legacy auto was created decades ago, but the Model Y has become The best selling vehicle on the planet.

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