Elon Musk, long hailed as a visionary in electric vehicles, has also become a lightning rod for controversy and according to a new study from Yale economists, those controversies have had a jaw-dropping impact on Tesla’s sales. Research published by the National Bureau of Economic Research (NBER) examined county-level new vehicle registration data from 2020 to 2025, focusing keenly on the period from October 2022, when Musk acquired Twitter (now X), through April 2025.
The study exposed what it calls “the Musk partisan effect,” finding Tesla sales in Democratic-leaning counties a historically loyal market for the automaker plummeted sharply starting in late 2022. Meanwhile, sales of competing electric and hybrid vehicles rose by 17 to 22 percent. Researchers concluded that without Musk’s increasingly partisan actions including support for Republican candidates and controversial content moderation policies Tesla’s U.S. sales would have been between 67% and 83% higher, equating to an additional 1 to 1.26 million vehicles sold over the period.
This dramatic shift signifies a cultural and political backlash catalyzed by Musk’s role as a polarizing public figure rather than the product line itself. Notably, Tesla’s traditional core customers skew Democrat and environmentally conscious a demographic that distanced itself amid Musk’s political forays.
Economist Kenneth Gillingham, lead author of the report, emphasized this unprecedented dynamic: “This study highlights just how impactful a CEO’s partisan actions can be. Musk’s political behavior, unrelated to Tesla’s core business, had an enormous effect on sales.”
The findings also underline the shifting playing field in the EV market. While Tesla’s sales took a hit in parts of the U.S. aligned with Musk’s political opposition, other automakers gained ground by attracting these same consumers.
Despite these setbacks, Tesla reported record global deliveries in Q3 2025, aided by rushing U.S. buyers before federal tax credits expired, showing that the company’s challenges remain complex and multifaceted.
Musk and Tesla have yet to publicly respond to the Yale study.