Edmunds reposted this
Tesla quarterly earnings reports have historically been the subject of heavy scrutiny as a barometer of the health of the overall EV market. Today’s call comes at a particularly interesting moment in time when widespread EV adoption is threatened by a number of headwinds and EVs are supercharging political debates among Americans in an historic and unprecedented presidential race. According to Edmunds survey data from earlier this year: 🔵Democrats have an overwhelmingly more favorable opinion of EVs, with only 5% claiming to dislike EVs, compared to 39% of 🔴Republicans. As America’s partisan divides widen, Elon Musk's very public support of former President Donald Trump has the potential to alienate Democratic-leaning consumers who are more likely to be EV potential buyers/owners, and could therefore pose a threat to Tesla’s bottom line. The road ahead for Tesla is already laden with obstacles amid increasing global competition and an aging product lineup — and price cuts simply aren’t as effective as they once were in driving sales for the company. Giving prospective EV buyers any sort of political reason to avoid purchasing a Tesla is probably not what the company needs right now — especially since Edmunds data reveals that a growing share of Tesla owners are more likely to trade their Tesla in for an EV over an ICE vehicle when buying their next vehicle. TL;DR: Tesla does theoretically have the advantage of keeping such a large consumer base in the fold (as all brands do), but Musk's outspoken political leanings could give other automakers an opening to crack into Tesla's early and expansive EV buyer base.