A new study from the National Bureau of Economic Research claims that Elon Musk's political leanings have cost Tesla more than 1 million car sales in the U.S. since late 2022, while boosting rival automakers' sales by over 20 percent.
Researchers found that Musk's outspoken right-wing political views and alignment with Donald Trump turned away a significant portion of potential Tesla buyers. The paper estimates the company lost up to 1.26 million sales between October 2022 and April 2025, representing as much as 83 percent of Tesla's actual sales during that period.
At the same time, competitors like Rivian, Ford, and Hyundai benefited from the backlash, seeing sales rise between 17 and 22 percent. The researchers concluded that Musk's political actions created one of the most dramatic examples of how personal branding can influence consumer behavior in the automotive industry.
Musk's relationship with Trump reportedly soured after the administration cut federal EV credits and pushed anti-electric vehicle policies that cost Tesla billions. Still, his continued political involvement has kept the controversy alive.
Despite the negative impact in the U.S., Tesla's Model Y remains a global hit, ranking as Europe's best-selling car in September 2025 with nearly 26,000 units sold.
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