Becky Peterson
Appearances
Apple News Today
Protests, arson, trade-ins: inside the Tesla backlash
We saw Donald Trump sit in one of the cars and he joked about how he doesn't get to drive very much anymore.
Apple News Today
Protests, arson, trade-ins: inside the Tesla backlash
A big one was in 2020 when Tesla's only U.S. factory in California had to stop making cars because of coronavirus lockdowns. We saw Elon get really upset about those lockdowns and really turn against the state of California in response. It was soon after that that he moved the company to Texas and he started advocating for different politics.
Apple News Today
Protests, arson, trade-ins: inside the Tesla backlash
We looked at sales and survey data, which suggests that politics is definitely affecting demand. Tesla had... a long history of being very popular in Democratic-leaning areas like San Francisco and Los Angeles. Now, though, it looks like Republicans are more likely to say they would buy a Tesla than Democrats are, which is a sharp reversal from much of the company's history.
Apple News Today
Protests, arson, trade-ins: inside the Tesla backlash
We've seen people increasingly come out and protesting Tesla properties, whether that's showrooms, where there's been a number of peaceful protests across the country.
Apple News Today
Protests, arson, trade-ins: inside the Tesla backlash
There have been service centers that have been riddled with bullet holes. There's been some instances of arson at Tesla superchargers and examples of people having their Tesla spray fainted with graffitis, often swastikas or other references to Nazis.
The Journal.
Tesla Has a Problem: Elon Musk
Tesla's mission is to accelerate the world's transition to sustainable energy. So Tesla had a stellar reputation as being sort of this luxury car. It has electric battery. It doesn't use gasoline. So a lot of buyers saw it as a way to address climate change head on. And who have been Tesla's primary customers? What sorts of people were buying these cars?
The Journal.
Tesla Has a Problem: Elon Musk
It really took off among buyers in California. The Democratic state had a lot of success in areas like San Francisco and Los Angeles. where people are dependent on cars but are also more conscious about climate change and driving's impact on the environment. And so Teslas were seen as this sort of high-tech answer to climate change.
The Journal.
Tesla Has a Problem: Elon Musk
It's kind of hard to overstate how popular it is among Californians and in other areas like that.
The Journal.
Tesla Has a Problem: Elon Musk
Musk has always been an outspoken figure. He mostly, in the early days, stuck to making big claims about spaceflight and sort of painting this vision of a future where Everyone's driving EVs. He's going to take us to Mars. He was making bold claims, but they mostly were focused on the future of technology.
The Journal.
Tesla Has a Problem: Elon Musk
He started posting a lot more about politics and getting involved in sort of like the global order of things. He has expressed opinions on everything.
The Journal.
Tesla Has a Problem: Elon Musk
We're seeing all across the country, and I've even heard stories about it happening in Europe, people buying bumper stickers or magnets to put on their cars to distance themselves from Musk's politics.
The Journal.
Tesla Has a Problem: Elon Musk
I want to get away from Elon Musk, everything Elon Musk, what he stands for. I decided I don't want to drive a Muskmobile, is what I've been calling this car. I love the car. I don't like driving something that supports Elon Musk, so we're getting rid of it.
The Journal.
Tesla Has a Problem: Elon Musk
Seems like people are finding that Tesla stores, Tesla superchargers and Teslas they see in the street are illegal. good locations to protest what's happening in the federal government. That's our colleague Becky Peterson, who covers Tesla. So across the country, we've seen protests at Tesla sales locations. We've also seen arson at superchargers and people spray-painting graffiti on random cars.
The Journal.
Tesla Has a Problem: Elon Musk
You know, in areas like Germany, it's pretty clear. So sales in Germany in February were down 76 percent compared to February last year. And in France, they were down 26 percent compared to February of last year. But that's after having another huge drop in January.
The Journal.
Tesla Has a Problem: Elon Musk
Just a question of how much further can that go? But worldwide, we're seeing it lose market share in some of its most popular regions. So even though industry-wide EV sales rose 25%, Tesla sales still declined last year.
The Journal.
Tesla Has a Problem: Elon Musk
The sales and survey data that we looked at definitely shows that politics is affecting demand. Republicans are more likely to say that they would buy a Tesla than Democrats, which is a sharp reversal from what we've seen for most of the company's history. So the percentage of Democrats who said they would consider buying a Tesla declined from 23% in 2023 to 13% in February.
The Journal.
Tesla Has a Problem: Elon Musk
And over that same period, the percentage of Republican buyers that would be interested in it grew from 15% to 26%. But the challenge for Tesla, some analysts say, is that conservatives are still more hesitant to buy EVs. So they're not really naturally interested in the product.
The Journal.
Tesla Has a Problem: Elon Musk
Tesla is in the process of moving from a revenue model that's almost entirely based on selling cars to one where Tesla is an AI and robotics company.
The Journal.
Tesla Has a Problem: Elon Musk
I think that the big... shift that Musk has suggested is that Tesla could become more like a software company. So right now it sells cars which are low margin. They're expensive to make. There's limitations on how much people are willing to spend. And it's just a lot of work to build a car.
The Journal.
Tesla Has a Problem: Elon Musk
Software revenue is just a lot more valuable. So right now, if you own a Tesla and you want to subscribe to FSD Supervised, the hardware is already on the car. And then you pay $99 a month to subscribe to this service. And I think Musk envisions a future where you pay $99 a month to subscribe indefinitely.
The Journal.
Tesla Has a Problem: Elon Musk
There's also plans for Tesla to roll out robo taxis, which is more in line with what Waymo is doing. So in that case, Tesla would own a fleet of vehicles that people could use as a ride hailing service around the country. Right now, the plans, though, are limited in scope. Tesla said it's going to roll out that service in Austin in June.
The Journal.
Tesla Has a Problem: Elon Musk
And we know it's also applied for some early permits that would allow it to eventually roll out something similar in California. So Musk really has this vision of a future where all cars are autonomous. So in his brain and in the brain of Tesla's most bullish investors, they can potentially convert every single possible driver in the world to being a Tesla FSD subscriber.
The Journal.
Tesla Has a Problem: Elon Musk
We got the first view of the CyberCab. It's this tiny little two-seater car. and sort of gave a vision of what it would look like if, you know, a city was full of autonomous vehicles.
The Journal.
Tesla Has a Problem: Elon Musk
Right now, autonomous vehicle regulations are done on a state-by-state basis, which is something that Elon and his executives are eager to change.
The Journal.
Tesla Has a Problem: Elon Musk
Musk has complained about this for ages across a range of different projects, especially when it comes to rockets. But basically, they just see local regulations, especially environmental regulations, as getting in the way of their ambitions.
The Journal.
Tesla Has a Problem: Elon Musk
People see Tesla as a way to directly respond to what's happening in the government. Musk wasn't elected. There's not a lot of ways to hit back directly. So there's sort of a movement to try to get at him financially. Tesla's sales are declining for the first time. That's at a company that has only seen growth for the last decade.
The Journal.
Tesla Has a Problem: Elon Musk
That's the hope of people close to Tesla and investors in Tesla. What do you think this means for the future of Tesla? Elon is famous for making these really bold claims about the companies. Recently, he's been talking a lot about the potential for Tesla's transition to be an AI and robotics company. He said that one day Tesla could ultimately be worth $30 trillion.
The Journal.
Tesla Has a Problem: Elon Musk
But the future that Musk has painted of an autonomous vehicle company is not yet something that customers can invest in. The cyber cab is not available to customers. FSD is not fully autonomous. We're still waiting for Tesla to roll out its ride-hailing service.
The Journal.
Tesla Has a Problem: Elon Musk
Musk is a man of very strong convictions. I don't think we know for sure that it's all strategy. I think it's very likely that he just really believes in the politics that he's advocating for right now, that it's sort of a philosophical position. But if you are an investor... and you're looking toward the grand vision, it seems there's an argument that Tesla could benefit from less regulation.