Tesla hurt by Musk's falling reputation: survey

STORY: Tesla is falling out of favor with American consumers.

That’s according to a survey by market intelligence firm Caliber which found the number of potential Tesla buyers in the U.S. is shrinking, which it attributed in part to CEO Elon Musk’s polarizing persona.

Caliber’s so-called “consideration score” for the electric car company provided exclusively to Reuters dropped to 31% in February down from 70% in November 2021 when it started tracking consumer interest in the brand.

Other car companies Caliber tracks have fared better.

Tesla did not respond to a request for comment.

Musk in the past has blamed high-interest rates for curbing consumer demand for big ticket items like cars.

Caliber cited strong associations between Tesla's reputation and that of Musk for the scores with its survey showing 83% of Americans connect Musk with Tesla.

Reuters spoke to five marketing, polling and car experts who said controversies surrounding Musk's increasingly right-wing politics and public statements are weighing on Tesla's brand and demand.

In recent years, the billionaire courted controversy with his embrace of the Republican party and endorsement of antisemitic comments on X.

Musk has denied being antisemitic.

Tesla continued to post strong sales growth last year, helped by aggressive price cuts, though the EV maker is expected to report weak quarterly sales as early as Tuesday.

The stock has fallen about 30% so far in 2024.