Falling Tesla sales nothing to do with Musk – report

A consumer research firm says plummeting Tesla sales in New Zealand have nothing to do with its chief executive Elon Musk’s polarising views – and more likely are down to domestic political change, new technologies, and even age-old dilemmas like choosing the colour.

An Australian analyst told ABC that Tesla sales year on year have slumped around the world, including by a third in Australia, and much of it is due to Musk’s “extraordinary” action, Radio New Zealand (RNZ) reports.

They included antisemitic tweets, questionable hand gestures and linking arms with US President Donald Trump.

Canstar New Zealand’s editorial manager Bruce Pitchers said Tesla’s most popular car, the Model Y, saw an 80% drop in sales last year.

But nationwide, sales for every make and model of electric vehicle (EV) has plummeted, and Tesla cars remain the most popular.

“The sales of Tesla were down well before his well-publicised bromance with Trump,” says Pitchers.

“He’s always been a polarising figure but whether or not that’s going to put you off buying a car?”

However, some Kiwis do seem to have issues with Musk, says RNZ.

“A photo of a vandalised Tesla sign in Wellington with graffiti saying “F— off fascist” has clocked up more than 37,000 likes on Instagram recently.”

Politics could be applied to most car-buying decisions, Pitchers says.

“When you look at other electric car brands, particularly those coming out of China and the accusations there, of swamping the market, particularly in Europe, with subsidised cars, [and] there were a lot of green issues with buying EVs.”

In New Zealand, EV sales had hit the skids after the new coalition government ended the Clean Car Discount, and brought in the addition of the road user charges for EVs, Pitchers says.

Another reason sales are down around the world could be the technologies coming along, such as the new hybrid cars, which are challenging the traditional EV’s crown, he says.

“They are now far more popular and offer fuel consumption savings that are almost comparable to EVs.

“I really don’t think people spending a lot of money on a Tesla are going to be thinking about the Tesla share price and the fact that it’s making Elon richer,” Pitchers tells RNZ.

“A lot of are much more worried about the colour, or the connectivity with their phones.”