Are MAGAs Gonna Buy Teslas?
...if they have the $$, will they allow themselves to be caught dead in an EV?
I was feeling sorry for Tesla dealers since Musk has poisoned the brand…so I did some research and found out that they are all company-owned. So there is no dealer to feel sorry for. If the sales staff is on commission, yes, I’ll feel sorry for them.
Here’s some bad news from Forbes…
This will be Tesla’s weakest quarter for car deliveries since 2022, according to JPMorgan analysts, as the polarizing, powerful role of Tesla boss Elon Musk in President Donald Trump’s administration increasingly weighs on Tesla in the eyes of Wall Street. In a Wednesday note to clients, the JPMorgan group led by Ryan Brinkman lowered its forecast for Tesla’s first-quarter deliveries by 20% from 444,000 to 355,000, significantly below the consensus analyst projection of 430,000, according to FactSet.
JPMorgan’s prediction calls for Tesla’s lowest deliveries since 2022’s third quarter and an 8% decline from 2024’s first quarter. The negative shift comes as Tesla faces the "acute" effects of Musk's "more divisive new role in government," explained Brinkman, alluding to Musk’s role as the head of the Department of Government Efficiency (DOGE).
Tesla sales in Europe are “under far greater pressure than at home as a consequence of statements by Musk pertaining to the war in Ukraine, U.S. participation in NATO, and far-right political parties,” Brinkman added, as new Tesla vehicle registrations cratered 50% year-over-year in January.
And “Tesla appears to have the most to lose” among American car companies from the “shifting regulatory backdrop” under Trump, according to the analysts, citing the potential rollback of electric vehicle tax credits which could further cut into demand for Teslas.
JPMorgan’s $120 share price target for Musk’s company is the lowest on Wall Street, according to FactSet data, and it implies more than 50% downside from Tesla’s $248 ticker Wednesday.
“We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly,” wrote the JPMorgan analysts.
So the brand has gone from a darling of well-educated, climate-conscious consumers to a symbol of a fascist oligarch’s bid to install right wing governance the world over. Not great for business.
Trump’s attempt to juice their sales will fall flat, because
His base likely won’t have the scratch to afford a Tesla, but if thjey did they wouldn’t be caught dead in an EV “lib-mobile.”
Educated consumers with well-paying jobs and a climate sensitivity will be repelled by trump’s boosterism, not to mention Musk’s fascism.
Can’t leave the subject without pointing out the hypocrisy: Musk has benefited hugely from the government’s promotion of electric vehicles as well as his government contracts. Is anyone scouring them for “fraud and abuse”?
"MAGAS... to be caught dead in an EV."
Those terms are surprisingly attractive.
I've worked personal security details for synagogues and during those assignments noticed a high percentage of Teslas driven by the Jewish congregation.
This situation has to present a conflicted set of circumstances for those drivers. I don't do those assignments anymore so am only guessing that the appeal for Teslas has declined among the well-to-do Jewish professionals.
Nicely done piece, Kevin, thank you.