CALIFORNIANS ARE ‘ASHAMED’ TO DRIVE TESLAS
The Silicon Valley region once witnessed the highest adoption of Teslas. Now, people there are moving away from the brand.
- Tesla sales in the Silicon Valley region have slipped by 22% in the first six months of the year.
- The region was once the Tesla hotspot, but rivals are quickly gaining ground as CEO Elon Musk continues polarizing his customer base.
Tesla sales and market share have declined for consecutive quarters this year and that trend is also reflecting certain parts of California, where Teslas have been historically popular, the most recent vehicle registration data suggests.
The first and second wave of Tesla buyers, especially in the Silicon Valley region, weren't just drawn to the brand's cool factor, but also its tech-forwardness and climate-conscious appeal. Now, experts suggest that rising competition and CEO Elon Musk’s shift toward far-right politics might be a drag on the brand.
Once Tesla's stronghold and the birthplace of its success, the region was a proving ground for a brand that made Musk the world’s richest man and accelerated the global shift to EVs. But now, Musk is undermining that very brand, tarnishing the empire he built.
According to S&P Mobility, Tesla registrations fell 22% between January and July in Santa Clara county, the heart of Silicon Valley. Meanwhile rivals saw 41% growth. Tesla alternatives have been soaring in popularity recently. Nationally, non-Tesla EV sales are up 33% in the first six months of this year, as per InsideEVs’ analysis of Cox Automotive data.
While the sales of Tesla's volume-sellers like the Model 3 and Model Y seem to be declining, the Cybertruck's production has ramped up significantly and it's now the best-selling electric truck in the U.S.
"It's unquestionable that this cloud of behavior has affected the brand," Mario Natarelli, managing partner at branding agency MBLM told Automotive News. "Tesla was the EV leader, the most innovative, represented by a visionary… Now people are selling their Teslas, ashamed to even drive them because of the association with him.”
The list of Musk's controversies is endless. But here are some of the latest.
After the second assassination attempt on Republican Presidential candidate Donald Trump yesterday, Musk questioned why there were no similar assassination attempts on President Biden or Vice President Kamala Harris. After facing backlash, he deleted that post on X.
Musk is also donating $45 million per month to a pro-Trump Super PAC. In an interview with Trump last month, he said things like, “we shouldn’t vilify the oil and gas industry.” In the 24 hours after his interview with Trump, he tweeted 145 times, posting anti-immigrant content, election conspiracies and attacks against the media.
Data analytics firm CivicScience said that might be hurting the brand in a significant way.
In a survey of nearly 1,200 respondents familiar with Musk and Tesla, the majority of them said they were sensitive to a brand’s stance on social and political causes and were ‘somewhat’ likely to boycott a company based on the political leanings of its leader. However, those serious about buying Teslas are less affected.
“While Musk’s political stance could alienate new EV buyers in a tough market, those who are more serious about a Tesla purchase appear less likely to be concerned,” the report said.
The study adds that Democrats are twice as likely as Republicans to purchase an EV. But despite the huge discounts on Teslas and insane lease and financing offers on the Model 3 and Model Y, Tesla’s favorability reached an all time low of 18% in July among U.S. adults who lean liberal/Democrat.
Even among Republicans, Tesla’s favorability dropped from 36% in January to 18% in May, but rebounded slightly to 22% by July.
Tesla was still the EV market leader in California between January and July 2024, accounting for 56% of the market. But that’s a big drop from its 64% share during the same period last year. In the second quarter of this year, Tesla’s market share in the U.S. slipped to 49.7%, from 59.3% a year earlier, Cox Automotive data suggests.
Now, Tesla is shifting its focus from cars to artificial intelligence and robotics. The company’s robotaxi reveal is set for October 10 and Musk claims that the robotaxi business, along with sales of humanoid robots, could catapult its valuation into the trillions.
Whether that vision becomes reality is anyone’s guess, but one thing is clear: Tesla’s decline is proving more sustained than once anticipated.
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2024-09-16T16:01:07Z dg43tfdfdgfd