NBER's Latest Study: Since The Entry Of Elon Musk Into The Political World, Tesla Has Lost More Than One Million Sales

JAKARTA The infall of Tesla CEO Elon Musk into politics since acquiring Twitter (now X) in October 2022, has had a major impact on the finances of the electric car company. A recent study from Yale Scholars at the National Bureau of Economic Research (NBER) estimates that Musk's political stance that tends to partisans has cost Tesla more than one million vehicle sales.

The study analyzed the trend of registration of electric vehicles (EVs) in the United States throughout 2020-2025. The data shows Tesla's sales had skyrocketed in various regions before 2022. However, after Musk used platform X to echo free speech without limits' and showed proximity to Republicans, Tesla's sales began to plummet, especially in areas known to be left-handed (blue counties).

Losing 1.26 Million Units And Profits For Competitors

Quoted from InsideEvs, Tuesday, October 28, overall, NBER studies estimate Tesla should be able to sell 1 million to 1.26 million more units in the US between October 2022 and April 2025 or about 67 83 percent higher than the current sales realization. The researchers directly attributed this decline to partisan political actions and divided Musk'.

The impact was felt even in the short term. The study states that in the first quarter of 2025, without Musk's political influence, Tesla's monthly sales could reach 150 percent higher.

Musk's action also brought benefits to competitors. The study noted that sales of electric and hybrid cars from other brands increased by 22 percent, equivalent to an additional 1.26 million units during the same period. This increase occurred because many consumers chose to switch from Tesla to other brands.

Sharper Political Split

Musk's political stance shift, which includes open support for former US President Donald Trump and a campaign donation worth USD 300 million to Republican candidates, makes Tesla's holdings now seen as a political statement.

This can be seen from the results of the poll in the study, which shows the sharper polarization of public views:

Democrats: a negative view of Musk jumped from 28 percent in March 2021 to 92 percent in April 2025.

Republicans: a positive view of Musk rose from 30 percent to 75 percent in the same period.

The researchers cited this phenomenon as a real example of CEO's very expensive activism'. Musk's political shift is considered to have contributed greatly to Tesla's decline in sales, which in 2024 experienced a decline in vehicle shipments for the first time in more than a decade, and is not expected to grow in 2025.

The study concluded that Tesla's biggest challenge today is not simply because of its outdated product model, but because its own CEO has undermined Tesla brand's universal appeal in the global electric vehicle market.