Elon Musk's conservative politics are hurting his personal brand and alienating Tesla's main customers, Nobel laureate Paul Krugman says

The Tesla chief's embrace of conservative politics is at odds with the wealthy, environmentally conscious liberals who buy his cars, Krugman said.

• Elon Musk's conservative political views are alienating Tesla customers, Paul Krugman said.
• The Tesla CEO soured on the Democrats in May, saying he would vote Republican in the future.
• Krugman slammed Musk's political shift as "stupid" and impulsive as many Tesla buyers are liberals.

Elon Musk's embrace of conservative politics is tarnishing his personal brand and alienating Tesla's customers, Paul Krugman has said.

The electric-vehicle company's CEO declared in May that he had soured on the Democratic Party and would vote Republican going forward. The self-described centrist has voiced conservative views on numerous issues since then.

Krugman, a Nobel Prize-winning economist, tweeted on Tuesday, suggesting that Musk's political shift to the right has put him at odds with Tesla's core customer base, which he described as wealthy, environmentally conscious liberals.

"Tesla is an expensive luxury car, but zero-emission, and until the other day Elon Musk seemed like a cool guy who does space travel while hanging out with singers and Westworld actresses," Krugman said. "So owning a Tesla was, to be crude but I think accurate, a way to say 'I'm rich but I'm woke.'"

"Apparently, however, Musk didn't get his own memo," Krugman continued. "Instead he's gone full MAGA, turning off exactly the people who might buy his cars. Stupid? Unable to control his impulses? Probably both."

Tesla shares have plunged by more than 70% from their peak in November 2021, slashing the automaker's market capitalization from over $1.2 trillion to under $400 billion. While the striking decline might partly be a reaction to Musk's politics, there are clearly other factors at play.

For example, Musk's company has been caught up in a wider sell-off of technology stocks, sparked by historic inflation, surging interest rates, and mounting fears of a US recession. Tesla shares have also been hit by fears of flagging EV demand, supply disruptions, and Twitter being a costly distraction for Musk.

Krugman has been a vocal critic of Musk and Tesla for a while. He recently compared Tesla stock to bitcoin, arguing that hype and faith underpin both assets' prices. He also called Musk a "petulant oligarch" earlier this month, and said the tech billionaire is "tarnishing the legacy of the genius entrepreneur."

Tesla didn't immediately respond to a request for comment from Insider.

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