Is Elon Musk to blame for Tesla's sales decline? Analysts say yes.
For the first time, the American EV manufacturer recorded its first annual sales drop since the first year of the COVID-19 pandemic.
Numerous experts have said that various factors have contributed to Tesla's latest yearly sales decrease. One of them is Elon Musk's reputation. Here's why analysts believe that the billionaire's antics are negatively affecting Tesla's sales.
Is Elon Musk To Blame for Tesla's Declining Sales?
Caliber, a market intelligence firm, released new data revealing Tesla's declining potential buyers in the U.S. Caliber CEO Shahar Silbershatz said it's "very likely" that Elon Musk's reputation contributes to the EV company's declining appeal.
Silbershatz and other analysts said that Elon Musk's personal and inflammatory political views are deterring potential Tesla buyers.
In February, Tesla's score on Caliber's metric measuring if consumers like and trust a brand decreased to 31%. This is quite lower compared to its record in November 2021, which was 70%.
Although some people believe that Tesla EVs mark their environmental commitments, Oppenheimer senior analyst Colin Rusch said that consumers are uncomfortable being associated with Elon Musk, as reported by Business Insider.
Tesla's Annual Sales Declined
According to CNN Business' latest report, Tesla's annual sales decreased for the first time since the start of the COVID-19 pandemic.
But Elon Musk's antics are not solely to blame. Aside from his reputation, the intensifying competition between Chinese and Western EV manufacturers also significantly contributed.
Tesla announced that it had built 433,000 vehicles. However, the EV maker only delivers 387,000. This is lower than its record in the final three months of 2023, which was 484,507 EV deliveries.
It's also down from its previous vehicle sales during the first quarter of 2023, in which Tesla sold 422,875 EV units.
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