Tesla Inc.'s TSLA brand appeal is taking a hit at a time when the stock is trading in bear market territory.
What Happened: The approval rating for the electric vehicle (EV) brand slipped to a net negative score of 1.4% on Nov. 7, Wall Street Journal reported citing a YouGov survey. That's down from a positive score of 5.9% at the beginning of this year, and a peak score of 6.7% in May.
The results also illustrate a political divide between self-described liberals, who now seemingly view Tesla negatively compared to conservatives. This will likley continue considering Tesla CEO Elon Musk has expressed support for Republican Florida Governor Ron DeSantis; lifted the Twitter ban on former President Donald Trump; fired a lawyer who he alleges censored a story about Hunter Biden; and targeted Anthony Fauci in a tweet.
See Also: Elon Musk's Personal Actions Put Investors At Risk, Tesla Bull Re-Ups 2018 Letter
Another survey by Morning Consult showed that the net favorability of Tesla is down about 20 points among Democrats in November compared to the previous month. The metric was up 4% among Republicans, giving a total net favorability score of a negative 5.2 points.
Why It’s Important: This is the first time Tesla is getting a net negative score since YouGov began tracking the company in 2016.
Tesla along with other EV makers are going through a harrowing phase amid economic and geopolitical challenges. Production disruptions, supply chain challenges and slowing demand have dimmed the outlook for the companies.
See Also: How Did Elon Musk Make His Money
Tesla investors, and even those ardent fans of Musk and his EV venture, have disapproved of the billionaire's Twitter takeover.
Tesla remains a clear leader in the EV race, although there is no denying the fact that its share of the overall market is shrinking amid competitive pressure. S&P Mobility report released in late November showed that Tesla’s market share may be challenged as more affordable options with better technology and production build arrive. This is evident from the erosion in Tesla’s market share from 79% in 2020 to 65% this year, the report said.
In premarket trading, Tesla shares were down 0.36% at $178.40, according to Benzinga Pro data. The stock has shed about 49% in the year-to-date period.
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