Tesla Faces ‘Bud Light Moment’ Amid Political Backlash

Tesla is facing a politically charged consumer backlash, as left-leaning customers react to CEO Elon Musk’s increasingly right-leaning political stance.

Tesla sales have been declining, and the recovery could take time.

Investors are assessing the fallout and whether it will have a lasting impact, Barron’s Daily reporters Al Root and Liz Moyer wrote.

Some Tesla owners are now reluctant to be seen driving the brand. Arjun Divecha, a director at GMO’s emerging markets equity division, said his wife wants to sell their Tesla—even though he calls it “the best car he’s ever owned”—because owning one in Berkeley, California, could be perceived negatively.

Tesla sales have been declining, and the recovery could take time. Analysts compare the situation to Bud Light’s 2023 brand crisis, when a social media post featuring transgender influencer Dylan Mulvaney sparked a conservative-led boycott.

Research from Harvard University found that Bud Light sales fell sharply in Republican-leaning areas and remained 30% lower a year later.

However, there are key differences. Unlike beer distributors that shifted inventory to competing brands like Coors and Modelo, Tesla dealerships aren’t structured to do the same.

Additionally, replacing a Tesla is far costlier than switching to another light beer.

In an attempt at damage control, President Donald Trump held a White House event displaying five Tesla models on the South Lawn. He pledged to buy a red Model S, promising to write a check as Musk looked on.

Tesla stock rose nearly 4% following the event but remains down 43% this year.

Wedbush analyst Dan Ives, a longtime Tesla bull, warned that Musk’s government role is becoming a distraction. “Investor patience is wearing thin,” he said, adding that Musk “isn’t reading the room” and calling this Tesla’s moment of truth.