Elon Musk’s words and actions are shaping how potential Tesla customers perceive the electric vehicle brand, deterring some from making a purchase, according to a recent US study.
A survey conducted by market intelligence firm Caliber revealed that Tesla’s “consideration score,” which measures the likelihood of someone buying the brand’s car when shopping for a new vehicle, has plummeted by more than half in the past 15 months. After peaking at 70% in November 2021, Tesla’s consideration score dropped to 31% in February 2024, despite its sales continuing to soar in the US and overseas.
During the same period, Tesla’s “trust and like score” also decreased from over 80% to under 60%, while 83% of US new car buyers associated Mr. Musk with the electric vehicle (EV) brand. Caliber CEO Shahar Silbershatz suggested that Musk’s actions may be contributing to the decline in Tesla’s reputation.
The drop in Tesla’s consideration score coincided with various events impacting the company, including delays in launching new models like the Cybertruck and legal battles over its semi-autonomous driving systems, albeit mostly resolved in Tesla’s favor. Furthermore, Musk’s acquisition of social media platform Twitter, now known as X, drew scrutiny due to its increasingly right-wing user base and the spread of misinformation.
Ed Kim, president of consultancy firm AutoPacific, noted that Musk’s behavior and politics are turning away potential EV buyers from Tesla, leading them to explore alternative options in the market. Nevertheless, Tesla continues to climb global sales charts.
In 2023, the Tesla Model Y emerged as the world’s best-selling vehicle, dominating European markets and gaining traction in the US and Australia. Just recently, Tesla marked the delivery of its 100,000th car in Australia, while celebrating the production milestone of its six millionth vehicle at its Fremont production facility in California.
