Tesla Loyalty Rate Falls After CEO Elon Musk's Political Moves

Benzinga

Tesla’s brand loyalty has plunged since CEO Elon Musk endorsed Trump in July 2024, according to Reuters. Brand loyalty fell from 73% to a low of 49.9% in March before partially rebounding to 57.4% in May, according to exclusive S&P Global Mobility data. The drop tracks closely with Musk’s political involvement, including his leadership of a new federal agency and mass firings. Tesla’s dominance in acquiring new customers also declined sharply, as brands like Rivian and Porsche now gain more Tesla drivers than they lose. Brian Mulberry of Zacks Investment Management expects Tesla’s long-term earnings to remain strong due to its robotaxi ambitions and self-driving tech licensing plans. Tesla sales fell 8% in the U.S. and 33% in Europe through mid-2025.

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00:00It's Benzinga, bringing Wall Street to Main Street.

00:02Tesla's brand loyalty has plunged its CEO Elon Musk endorsed Trump in July 2024,

00:07according to Reuters. Brand loyalty fell from 73% to a low of 49.9% in March,

00:13before partially rebounding to 57.4% in May, according to the exclusive S&P Global Mobility

00:18data. Trump tracked closely with Musk's political involvement, including his leadership of a new

00:22federal agency in mass firearms. Tesla's dominance in acquiring new customers also

00:27declined sharply. Brands like Rivian and Porsche now gain more Tesla drivers than they lose.

00:32Brian Mulberry of Zax Investment Management expects Tesla's long-term earnings to remain strong

00:36due to its robo-taxi ambitions and self-driving tech licensing plans. Tesla sales fell 8% in the U.S.

00:42and 33% in Europe through mid-2025. For all things money, visit Benzinga.com.

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