Elon Musk Value Tesla 1 Million Automotive Gross sales In The U.S. Since Shopping for Twitter: Examine

• A brand new research exploring Elon Musk’s political activism reveals simply how a lot it is harm Tesla.
• Researchers estimated that at the least 1 million EV gross sales had been worn out from Tesla’s U.S. deliveries from October 2022 to April 2025.
• Gross sales for different EV makers elevated by as much as 22%.

Tesla CEO Elon Musk’s political crash out has been painful to observe. His public endorsement of U.S. President Donald Trump and spearheading function within the controversial Division of Authorities Effectivity (which was linked to greater than 280,000 layoffs) earned Musk—and Tesla—a unfavourable status amongst left-leaning voters within the U.S.

A brand new research by Yale students at the Nationwide Bureau of Financial Analysis (NBER) reveals simply how a lot of an influence that status had on Tesla’s gross sales. Because it seems, since Musk purchased Twitter, his political meddling has price Tesla greater than 1,000,000 automobile gross sales whereas additionally boosting the variety of EVs and hybrids bought by opponents.

Photograph by: White Home

The researchers analyzed EV registration tendencies throughout counties within the U.S. from 2020 till 2025, monitoring gross sales throughout political traces throughout the timeframe. Earlier than 2022, Tesla gross sales had been booming in every single place. However like clockwork, when Musk purchased Twitter in October 2022 and used it as a approach to amplify his “free speech absolutism” and alliance with the Republican occasion, issues began to go downhill—particularly in blue counties.

In whole, the research estimates that Tesla would have bought 1 million to 1.26 million extra models between October 2022 and April 2025 within the U.S.—67-83% greater than it did. It immediately attributes that lack of gross sales to Musk’s “polarizing and partisan actions.”

The research was first noticed by Electrek.

These actions did not simply price Tesla gross sales, both—additionally they gave a lift to the competitors. The research estimates that gross sales of opponents’ electrical and hybrid automobiles elevated by as much as 22% (1.26 million models), throughout the identical time interval. That is as a result of individuals who did not purchase Teslas flocked to different manufacturers. Needless to say that is earlier than the Q3 EV tax credit score growth that introduced report EV gross sales to automakers throughout the board.

Zoom in, and the impact is even higher. “By the primary quarter of 2025, we discover that with out the Musk partisan impact, Tesla month-to-month gross sales would have been about 150 p.c larger,” the research mentioned.

Photograph by: InsideEVs

The researchers dub this a textbook case of “CEO activism,” however with an exceptionally costly twist. Musk’s political realignment, which included $300 million in marketing campaign donations to Republican candidates, turned Tesla possession right into a political assertion of its personal. And that contributed vastly to Tesla’s flailing gross sales over the past couple of years. In 2024, Tesla had its first down yr of car deliveries in over a decade. And it is on observe for one more yr with out progress in 2025.

Polls cited within the research additionally make it crystal clear that there is a political divide amongst the general public and consumers. Between March 2021 and April 2025, the proportion of Democrats with a unfavourable view of Musk elevated from 28% to 92%, whereas these with a constructive view decreased from 21% to only 4%. Throughout the identical time, Republicans viewing Musk favorably rose from 30% to 75%.

The takeaway? Whereas Tesla might need a problem with people feeling that its automobiles are growing old a bit rapidly, it has different fish to fry too. Tesla’s greatest downside could also be that its CEO has warped its as soon as untouchable enchantment amongst world EV manufacturers.

NBER’s paper features a well-known quote from Michael Jordan within the early ’90s that will function a lesson for Musk: “Republicans purchase sneakers, too.” Sadly for Tesla, they’re clearly not shopping for EVs in a manner that makes up for the Democrats which have defected from the model.