Elon Musk’s Partisan Political Activities Resulted in Over 1 Million Fewer Tesla Sales

Have you ever seen a Tesla driving down the highway — maybe one with a bumper sticker of a circle-backslash over “Elon” — and wondered how the high-profile Musk’s partisan political activities have affected the company’s U.S. sales? YSE Economists Kenneth Gillingham and Matthew Kotchen have, too. They, along with Jackson School of Global Affairs Dean James Levinsohn and School of Management Professor Barry Nalebuff, examined the impact of Musk's partisan actions on Tesla vehicle sales in the U.S. since October 2022. Their analysis, which utilized vehicle registration and political affiliation data, identified a significant shift in sales trends post-October 2022, particularly in Democratic counties. They found that not only would Tesla sales have been 67-83% higher without Musk’s partisan effect — equating to 1-1.26 million more vehicles sold — but Musk’s actions also boosted sales of other electric and hybrid vehicles by 17-22%.

The authors noted that the “Musk partisan effect” showed no indication of slowing down and has significant implications for the broader electric vehicle market and state emissions targets, possibly putting California's zero-emissions vehicle target at risk.

“The effect has been increasing over time, such that by the first quarter of 2025, we found that Tesla sales would have been about 125% higher than they were without the Musk partisan effect,” Kotchen said.

The findings, they added, emphasize the importance of understanding the effects of CEO activism on consumer behavior.

“This work highlights the dangers of CEO activism that could antagonize a firm’s core customer base in the context of an environmentally friendly good,” Gillingham added. 

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