The allure of purchasing a Tesla in the United States appears to be waning, as indicated by a recent survey conducted by market intelligence firm Caliber. Factors contributing to this decline include the polarizing persona of CEO Elon Musk.

Despite Tesla’s sustained sales growth in the past year, buoyed by aggressive pricing strategies, the upcoming quarterly sales report is expected to reflect a downturn.

Caliber’s examination of Tesla’s “consideration score,” a metric tracking consumer interest, revealed a significant drop from its peak of 70% in November 2021 to a mere 31% in February. This decline stands in stark contrast to the incremental uptick in consideration scores observed for competitors such as Mercedes, BMW, and Audi during the same period. The association between Tesla’s reputation and that of Elon Musk is notably strong, with 83% of Americans linking the two, according to Caliber’s findings.

CEO Shahar Silbershatz of Caliber suggested that Musk’s personal controversies, including his espousal of right-wing politics and controversial public statements, have cast a shadow over Tesla’s brand image and demand. Marketing experts like Tim Calkins from Northwestern University emphasize the risk of delving into politics, particularly in the competitive automotive industry.

Beyond Musk’s persona, economic concerns, the lack of affordable new models, and increasing competition from cheaper alternatives, notably China’s BYD, pose challenges to Tesla’s dominance. While overall electric vehicle sales in the U.S. are projected to grow by 15% in the first quarter of this year, Tesla’s sales are forecast to rise by only 3%, according to Cox Automotive estimates.

This slowdown in Tesla’s growth is reflected in various indicators, including a drop in new car registrations in California, Tesla’s largest market. Analysts have adjusted their target prices for Tesla downward amid expectations of disappointing delivery results for the first quarter, contributing to a nearly 30% decline in Tesla’s shares year-to-date.

While Musk’s larger-than-life persona has historically bolstered Tesla’s image, recent controversies have had a tangible impact on the company’s reputation. Brand valuation consultancy Brand Finance noted a decline in Tesla’s reputation across several key markets in 2023, attributing this downturn partly to Musk’s behavior and political affiliations.

Despite these challenges, Tesla maintains a loyal customer base, with high levels of owner loyalty, according to S&P Mobility. However, a growing segment of potential EV buyers, such as London-based consultant Jonny Page, are opting for alternatives to Tesla due to concerns over Musk’s behavior and safety issues. Nonetheless, for many, like Texas-based Tesla owner Christian Cook and Wisconsin-based climate activist Kat Beyer, the allure of Tesla’s innovative electric vehicles outweighs concerns about Musk’s controversies, reflecting the complex interplay between brand loyalty, personal values, and environmental considerations in the automotive market.