- Natalie Sherman & Samira Hussain
- BBC Business Reporters in New York
Anne Marie Squeo says she’s embarrassed to drive her Tesla.
When Anne Marie Squeo took delivery of her flaming red Tesla car in 2020, she felt like she had joined a special “club” of people who were doing something to help the environment, and doing it in style along the way.
But last year, when Tesla owner Elon Musk shared far-right conspiracy theories on Twitter, posted a photo showing guns next to his bed, and proposed a series of solutions to end the war in Ukraine that many leaders politicians rejected, Anne Marie’s satisfaction turned to shame.
“It’s been very depressing, and at times embarrassing, to drive this car,” says the 55-year-old marketing and communications professional who lives in Connecticut, who wrote an article about her discomfort.
“I was wondering if people were doingendo judgments about meYo that I didn’t want them to do.”
Elon Musk was once seen as the secret behind Tesla’s success, but today, it seemedand be the main one of your problems.
Anne Marie Squeo.
stock drop
As Musk’s relentless stream of politically charged posts alienates a key part of Tesla’s customer base, increased competition has begun to chip away at the firm’s dominance of the electric car market.
Tesla’s share value plummeted in 2022 – the worst drop since the company went public in 2012 – reflecting these concerns, as well as concerns such as disruptions to supply chains, and a weaker economy.
In December, big investors – some of them longtime Musk allies – voiced their concerns publicly, accusing him of abandoning Tesla after it bought Twitter for $44 billion in October and damaged the company’s reputation. brand.
It didn’t help that Musk sold nearly $20 billion of his shares in Tesla last year, a sale that had an impact on the share price and was partly triggered by the purchase of Twitter.
“It’s cost everyone a ton of money. Certainly did not protect Tesla shareholderssays investor Ross Gerber, who is now seeking a seat on Tesla’s board of directors and implementing changes, including spending on advertising, something Tesla has always proudly said it doesn’t need.
Gerber, the head of Gerber Kawasaki Wealth and Investment Management – and a self-proclaimed friend of Elon Musk – says he remains optimistic about the company’s future, and has increased the number of shares his firm holds in Tesla following the drop in the price. price.
But he also says that the company needs to have its own CEO and must create its own voice, one that differs from Musk’s.
“It’s very hard to believe now that Elon has been a positive advertising force for Tesla,” he says.
image source, Getty Images
the repercussions
Musk, with more than 127 million followers on Twitter, this week rejected any suggestion linking his unfiltered style on social media to the damage Tesla’s brand has suffered, arguing that his massive following “speaks for itself.” “.
But in recent weeks, faced with concerns about consumer demand, Tesla announced that it was implementing significant price cuts in the US, Europe and China, with some models receiving up to 20% discounts in the US. USA
Investors hope this move will cushion some of the damage to the brand, as financial concerns outweigh shoppers’ moral dilemmas.
Likewise, these discounts will impact the company’s profit margins, and for some car buyers, there is no going back.
Musk Apology
Indie Grant, who works in the insurance industry in New Zealand, ruled out buying a Tesla based on Musk’s political views, and decided to buy a Peugot instead.
Indie Grant ruled out owning a Tesla when he bought an electric car last year.
“With him so tied to the brand, buying a Tesla feels like inadvertently announcing, ‘I think Elon is the ultimate. I love everything he does,'” he says.
“That wasn’t really the message we wanted to send, and with such a variety of cars, it didn’t do much to rule it out when considering options.”
Very few things could make you consider buying a Tesla now, says Indie: “My opinion of Tesla would only change if I was no longer associated with it.”
It is not the first time that Elon Musk ends up in water up to his neck after his comments on Twitter.
A theme of trills
image source, EPA
Elon Musk appeared in a San Francisco court this week to face a legal case sparked by one of his trills.
One of Musk’s comments on Twitter that referred to the possibility of delisting Tesla sparked an investigation by regulatory bodies. Both the car company and Musk each had to pay $20 million in a settlement.
He was in court again recently, over a lawsuit filed by Tesla shareholders who said they lost money from the automaker’s stock price plunge after that Twitter message.
On another occasion, Musk referred to one of those involved in the rescue of Thai children who were trapped in a cave as a “pedophile guy”, which earned him a defamation lawsuit.
Musk won the case after saying he didn’t think the slur was going to be taken seriously.
But now Musk is no longer just another person using Twitter, he owns the platform.
Trilling from the throne
image source, Getty Images
Since Elon Musk bought Twitter, numerous changes have been implemented on the platform.
That has spawned the idea that his political views, which he increasingly shares, affect how Twitter moderates content.
After securing power on Twitter, Musk quickly lifted the ban on former US President Donald Trump on the platform.
He accompanied the decision with a trill that read: “My pronouns are prosecute/Fauci,” referring to Dr. Antony Fauci, the public face of the American response to the Covid pandemic. This sparked outrage among liberals, who are the most likely to buy an electric car in the US, Tesla’s biggest market.
“This is a primarily political story,” says Jordan Marlatt, a technical analyst at Morning Consult, a firm that tracks public perception of brands in the US.
He adds that he has seen a steep drop in Tesla’s favor among Democrats since April, when Musk announced his purchase of Twitter.
“He’s been much more open with his political views than he’s ever been before, and that’s taking a toll on consumer sentiment.”
Marlatt says brands typically recover from damages from politically charged incidents within 90 days.
“What’s different for Twitter and Tesla is that constant buzz,” he says. “It’s every day, sometimes almost every hour.”
Anne Marie has voted for both Democrats and Republicans. She says the previous controversies seemed like isolated incidents, but last year’s onslaught of comments from Musk left her exhausted.
“That Elon Musk is someone you don’t know what to expect is not new,” he says. “What’s different is this level of consistency, of doing it every day, and the fact that he’s going after social issues with the intention of upsetting people.”
She says she can’t see herself buying a Tesla the next time she needs to change cars.
“In the end, there’s a lot of variety to choose from. Are you really going to align yourself with that company that maybe no longer represents your values? I wouldn’t feel comfortable doing that.”
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