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Elon Musk’s Trump Alignment Drives Liberal EV Demand into Negative Territory

Liberal Americans’ EV purchase intentions have flipped negative after Musk’s Trump endorsement as Tesla endures weaker sales ahead of a looming tax credit expiration.

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Tesla CEO Elon Musk gestures as he arrives to visit the construction site of the future US electric car giant Tesla, on September 03, 2020 in Gruenheide near Berlin. - Tesla builds a compound at the site in Gruenheide in Brandenburg for its first European "Gigafactory" near Berlin. (Photo by Odd ANDERSEN / AFP) (Photo by ODD ANDERSEN/AFP via Getty Images)
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BEVERLY HILLS, CALIFORNIA - MAY 6: Elon Musk, co-founder of Tesla and SpaceX and owner of X Holdings Corp., speaks at the Milken Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California. The 27th annual global conference explores various topics, from the rise of generative AI to electric vehicle trends and features participants, soccer star David Beckham and actor Ashton Kutcher. (Photo by Apu Gomes/Getty Images)

Overview

  • A Williams College study shows liberal intention to buy any electric vehicle slipped into negative territory by March following Musk’s public alliance with President Trump.
  • Conservative interest in EVs and Tesla remained consistently low despite Musk’s shift, leaving both partisan groups equally unlikely to consider electric vehicles.
  • Tesla reported a 12% year-on-year drop in second-quarter 2025 sales amid consumer worries over tariffs, an aging lineup and Musk’s polarizing image.
  • New Tesla registrations in California fell for a seventh consecutive quarter, reflecting a broader year-on-year decline in US electric-vehicle sales.
  • A Republican spending bill signed by Trump will eliminate the federal $7,500 EV tax credit starting September 2025, a change dealers expect will further dampen demand.