Elon Musk’s Controversial Opinions Have Annoyed Tesla Customers

Jason Simon placed an order for a Tesla Model 3 in April, looking forward to owning an electric vehicle.

He heard from Tesla in June that his car was ready, but he backed out of the purchase, forfeiting the $250 order fee he paid.

Simon told the CNN Business that his feelings changed this spring after Tesla CEO Elon Musk struck a deal to buy Twitter.

Musk has since backtracked and indicated he wants to exit the deal to buy the social media company.

Simon is one of many EV buyers who have developed new and stronger feelings about Musk and Tesla in recent weeks.

Driving a Tesla has been a way for consumers to signal values ​​about the environment and sustainability.

Consumers connect deeply with brands that share their values ​​or represent what they want to be, according to Americus Reed, a professor of marketing at the Wharton School of the University of Pennsylvania.

Tesla has benefited from a powerful, identity-based loyalty that has sprung up with car buyers and rivals top brands like Apple and Nike.

“The intensity of the relationship for those who really like Tesla is off the charts,” said Reed.

Some car buyers are increasingly drawn to or away from Tesla because of a range of beliefs that align with or clash with Musk, including company policy, free speech and culture, according to interviews with 12 recent car buyers. .

In recent months, Musk has called Democrats a “division and hate” party, joked about putting cocaine back in Coca-Cola, compared the Twitter CEO to Joseph Stalin, challenged Russian President Vladimir Putin to a face-to-face fight for Ukraine and warned that “the virus of the awakened mind will destroy civilization”.

Simon said he felt sorry for Tesla employees who held shares in the company. Tesla shares are down 31% since Musk struck a deal to buy Twitter. The S&P 500 is down 11% over the same period.

Simon thought the share price’s slump suggested a lack of confidence in Tesla, as its busy CEO – Musk also leads SpaceX – took on another project. While Musk has said he wants out of the deal, he could now face a lengthy court battle if Twitter decides to take legal action against him.

“There are people besides him who have worked a long time to win these stocks,” said Simon, a business executive in Philadelphia who said he was “very serious” about his employees having a chance of winning.

“This is real life stuff for these people,” Simon said. “It’s very boring.”

California’s Steven Kronenberg canceled an order for a Tesla solar roof this spring after seeing Musk announce his support for the Republicans.

He also said he wasn’t happy to see Tesla face a lawsuit from a California civil rights agency over its treatment of black workers.

“If anyone wants to spend money on Hobby Lobby, or Chick-fil-A or Tesla, they can do it,” Kronenberg told CNN Business. “I have many other options.”

Chick fil-A had for a time donated to organizations that criticized same-sex marriage and the Hobby Lobby was at the center of a Supreme Court ruling that the Affordable Care Act could not force privately held companies to cover certain contraceptives. for employees.

Kronenberg said he is ordering an electric vehicle from a Tesla competitor.

Companies have historically seen some impact from taking political positions. Budweiser appears to have lost popularity in conservative counties after its 2017 Super Bowl ad favored immigration.

While Ben & Jerry’s has gained popularity in liberal countries for its support of same-sex marriage and Black Lives Matter, according to Vanitha Swaminathan, a professor of marketing at the University of Pittsburgh.

Reed, the Pennsylvania professor, described Musk as a “lightning rod” that people either love or hate. He sees Musk and Tesla as immune to harm from Musk’s recent behavior because people are already so divided by him. Musk can benefit from provoking strong feelings rather than indifference.

“If you’re a public figure, you’re probably better off being badmouthed,” Reed said. “Like, uh, whatever, the CEO of Ford, who cares?”

Swaminathan said Musk’s potential risk to Tesla’s sales and brand might not be very significant, as the automaker has a strong brand and is known for its innovation.

“Tesla’s own brand reputation can act as an insurance policy and limit the damage that the CEO’s position has on the brand,” said Swaminathan.

Colorado’s Erik Corkran has long been fond of Musk, whom he sees as an inspiring voice for individual freedom.

Corkran, who leans toward the libertarian, said he likes to be unlimited and has done a lot of freelance work in his career. He loves his Tesla Model X that he bought earlier this year.

Corkran said he is concerned about social justice issues like gender and race, but he feels they are becoming too much of a focus in schools at the expense of math or science.

Corkran watched this spring as Musk encountered a backlash as he moved to buy Twitter and mull over politics.

“You know what,” Corkran said he remembered thinking back in May. “I’m going to play $100. I’m going to get a Cybertruck.” While Tesla’s Cybertruck is not yet available — production was initially slated to begin in late 2021 but has been delayed until 2023 — potential buyers can reserve the opportunity to purchase one for a $100 deposit.

He expects to receive delivery in 2024, when Musk said the truck will be available.

Lisa Morris, who lives in Louisiana, ordered a Tesla this year to save on fuel costs during a long trip she often takes to take her granddaughter to school. She said she will be the first of her friends to own a Tesla.

Morris has strong feelings about politics and says that, as a businesswoman, she would rather “have 1,000 Republican customers than 100,000 Democrats.”

Morris said he was even happier with the purchase after Musk announced he would no longer support the Democrats.

“The man should keep doing this and never hide his opinion,” said Morris, who added that he has no respect for companies that hide their support for Republicans.

Scott Wilson of California, who owns a Model Y, placed an order for a second Tesla this year. But he said he had doubts and considered canceling the order.

“I don’t want Tesla cars to become the new MAGA hat,” Wilson said. “I don’t want to be seen as a rich idiot, and I don’t want to be seen as a political conservative, a libertarian free-speech warrior.”

For now, Wilson has stuck to his request. He said he’s helped Musk appear calmer on Twitter in recent weeks.

Other car buyers say Musk’s efforts outside of Tesla and his political views have no bearing on their decisions.

Steven Cohn, who bought a Model 3 this year, said he sees Musk as the American dream and admires what he’s done to fight climate change. But he also thinks Musk’s political views are “a little regressive.”

“I will make my purchase decisions based on what I feel is the best value for myself and my family,” said Cohn. “Not based on a political party.”