His conservative politics have hurt his personal brand and alienated Tesla’s main customers, Nobel laureate Paul Krugman said.

Elon Musk.REUTERS/Brendan McDermid/File Photo
Paul Krugman stated that Tesla customers are being alienated by Elon Musk’s conservative political views.

Paul Krugman stated that Elon Musk’s embrace for conservative politics is ruining his personal brand, and alienating Tesla customers.

In May, the CEO of an electric-vehicle business declared that he was no longer interested in the Democratic Party and that he would vote Republican. Since then, the self-described centrist has expressed conservative views on many issues.

Krugman, an economist who won the Nobel Prize for Economics, tweeted Tuesday that Musk’s shift to the left has made him unpopular with Tesla’s core customer base of liberals, wealthy and environmentally conscious.

Krugman stated that Tesla is a luxury vehicle, but it emits zero emissions. “Tesla was expensive, but it’s a luxurious car. However, until recently Elon Musk seemed like an interesting guy who can do space travel while hanging out in the company of singers and Westworld actresses.” To be blunt, but I believe accurate, owning a Tesla was a way to say “I’m rich, but I’m woke.”

Krugman said, “Apparently, Musk did not get his memo.” He’s instead gone MAGA and turned off precisely the people who could buy his cars. Stupid? Are you unable to control your impulses? Both.

Tesla shares plunged more than 70% since their peak in November 2021. This has slashed the market capitalization of the automaker from $1.2 trillion to below $400 billion. The dramatic decline in shares may partly be due to Musk’s political views, but there are other factors.

Musk’s company, for example, has been affected by a wider sale of technology stocks sparked in part by historical inflation, rising interest rates and mounting fears about a US recession. Tesla shares were also affected by concerns about EV demand and supply disruptions. Musk’s distraction from Twitter has been costly.

Krugman has been vocal in his criticism of Musk and Tesla for some time. Krugman recently compared Tesla stock with bitcoin, arguing hype and faith underpin the prices of both assets. Musk was also called a “petulant Oligarch” earlier in the month and said that the tech billionaire is “tarnishing his legacy as a genius entrepreneur”.

Insider reached out to Tesla for comment but they didn’t respond immediately.

Continue reading: Rob Arnott is paid by the world’s most prestigious investment firms for his advice. He shares 2 trades that he believes will yield 15% annualized returns over 10 years. And explains why there is a “decent likelihood” the market will see new lows.

Business Insider has the original article.
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By: tmohamed@businessinsider.com (Theron Mohamed)
Title: Elon Musk’s conservative politics are hurting his personal brand and alienating Tesla’s main customers, Nobel laureate Paul Krugman says
Sourced From: markets.businessinsider.com/news/stocks/elon-musk-politics-republican-paul-krugman-tesla-customers-stock-price-2022-12
Published Date: Thu, 29 Dec 2022 13:15:51 +0000