Tesla missed out on 1M EV sales. Reason? Elon Musk
What's the story
A recent study has revealed that Elon Musk's controversial political actions since acquiring Twitter (now X) in 2022 have had a major impact on Tesla's US sales. The research was conducted by Yale University economists and published by the National Bureau of Economic Research. It shows that Tesla could have sold between one million and 1.26 million more vehicles between October 2022 and April 2025, without what they term the "Musk partisan effect."
Partisan behavior
Musk's partisan behavior alienates Democratic buyers
The study links the decline in Tesla's sales to Musk's growing partisan behavior. This includes his nearly $300 million donations to Republican candidates and his role as head of the Department of Government Efficiency (DOGE) under US President Donald Trump. These actions have reportedly alienated environmentally-minded Democratic buyers who were once Tesla's strongest base.
Market impact
Competitors benefit from Tesla's losses
The study also notes that as Democratic-leaning buyers moved away from Tesla, competitors' electric and hybrid vehicle sales increased by about 17% to 22%. This suggests that Musk's political actions not only hurt Tesla but also helped rival automakers. The researchers concluded that California would have met its zero-emissions vehicle goals for 2026 "had it not been for the Musk partisan effect."
Market performance
California car registrations show decline
In California, where Tesla has significant presence, its car registrations fell by 9.4% in Q3 2025. The company's market share also dropped to 46.2% during this period. These figures highlight the impact of Musk's political actions on Tesla's performance in one of its key markets.