Tesla has reported a significant drop in sales, revealing a 45% decline in income for the second quarter of 2024 compared to the same period last year. The company earned $1.48 billion from April to June, down from $2.7 billion in 2023. Despite a 2% increase in revenue, Tesla’s shares fell by 8%. This downturn has led to speculation that Elon Musk’s public support for Donald Trump and far-right political views might be affecting sales.
Recently, Forbes questioned whether Musk’s political endorsements were damaging the company’s performance. The Wall Street Journal reported that Musk allegedly donated $45 million a month to a political action committee (PAC) supporting Trump, a claim Musk has denied. Musk clarified that he does contribute to America PAC but at a much lower level, focusing on promoting meritocracy and individual freedom.
Musk’s endorsement of Trump, especially after a recent assassination attempt on the former president, has raised questions about its impact on Tesla’s core market. Trump has expressed admiration for Musk, further intertwining their public personas. However, there is concern about how these political affiliations could affect the electric vehicle market, given Trump’s inconsistent support for such technologies.
In a conference call reported by Reuters, Musk suggested that while his political stance might slightly hurt Tesla in the short term, it could ultimately benefit the company. The situation remains complex, and the long-term effects on Tesla’s market performance are yet to be fully seen.
