TV host and car collector Jay Leno recently expressed his thoughts on Elon Musk’s newly forged relationship with President-elect Donald Trump. Leno believes that Musk’s shift in affiliation is partly driven by marketing, aimed at expanding Tesla’s customer base.
Musk’s Relationship with Trump: A Marketing Move?
Leno stated, “Everybody that wanted an electric car bought one. That’s why I think Elon is so smart. Every liberal in California bought the Tesla. Conservatives ‘Ahh that’s a hip guy.’ Well now he switches to Trump and you got all these conservatives buying.” Leno’s comment suggests that Musk has managed to tap into the conservative market by aligning with Trump.
However, Tesla researcher Troy Teslike disputes Leno’s claim. Teslike points out that the sales data doesn’t support the idea that conservatives are buying Teslas in large numbers. In fact, Tesla’s Model 3/Y sales are expected to drop by 13% in the US and 9% in Europe this year.
Delivery Numbers and Demand Problems
Teslike commented, “Tesla is still trying to avoid a drop in total car sales this year compared to last year, but they’re struggling with demand problems in the US and Europe.” Despite increased sales in China, the decline in US and European sales is still a significant challenge for the company.
To achieve growth over last year, Tesla needs to deliver at least 514,926 vehicles in the remaining three months of the year. However, the company has never managed to deliver over 500,000 electric vehicles in a quarter.
Musk’s Involvement in Trump’s Administration
Musk has recently been named to lead the Department of Government Efficiency, aimed at reducing bureaucracy and slashing regulations. Additionally, Musk campaigned for Trump in the swing state of Pennsylvania.
Tesla Stock Performance
Tesla’s stock has rallied since Trump’s presidential victory, with expectations of easier regulatory hurdles for autonomous vehicle deployment and reduced competition from smaller EV players.
The stock closed at $418.10 on Thursday, down 1.6% for the day. Since the November 5 election, the stock has rallied over 66%, helping it overcome the underperformance from the beginning of 2024 until then.