Is Elon Musk to blame for Tesla’s plummeting sales figures?
Yes, says Tesla shareholder Ross Gerber. “Let’s stop blaming the Houthi rebels or German environmental terrorists”, he wrote on X. “Or a recession that never came. Or interest rates. Only one person responsible for this.”
Unsurprisingly, Musk disagrees, calling Gerber an “idiot” and saying it was a “tough quarter for everyone”.
The latter is true, as evidenced by Chinese electric vehicle (EV) rival BYD reporting a 42 per cent fall in quarterly shipments. It’s also true that there are other factors, including the arson attack at Tesla’s Berlin gigafactory and shipping disruption in the Middle East, at play.
However, Gerber is right to highlight Musk’s controversial social media activity. It’s “very likely” that Musk is contributing to Tesla’s “reputational downfall”, says corporate intelligence company Caliber.
Days before Tesla released terrible sales figures, Caliber told Reuters Tesla’s “consideration score” – a brand engagement metric – had more than halved from 70 per cent in late 2021 to 31 per cent in February. Multiple factors are hurting Tesla. Musk’s love of attention and controversy is one of them.
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
