Elon Musk’s increasingly outspoken political stance is now taking a toll on Tesla. According to a new report from Yale University, Tesla’s U.S. sales dropped by 67% to 83% between 2022 and 2025, representing a loss of approximately 1 to 1.26 million vehicles.
The report, based on data from the National Bureau of Economic Research (NBER), describes this sharp decline as the “Musk partisanship effect.” Analysts argue that Musk’s alignment with Republican politics and his vocal support for Donald Trump have alienated many Democratic and environmentally conscious consumers, who once formed the backbone of Tesla’s customer base.
The report also highlights Musk’s $300 million in Republican donations, his leadership role in the Department of Government Efficiency (DOGE) during Trump’s administration, and his increasingly polarizing rhetoric as major contributors to Tesla’s image problem.
While Tesla’s reputation as an eco-friendly innovator fades, rival electric vehicle manufacturers have benefited, seeing their sales rise by 17% to 22%. Experts warn that Tesla’s shift from a symbol of sustainability to a politically charged brand could have lasting consequences for its market position.