As a longtime resident of Los Angeles and a follower of the automotive industry, I’ve witnessed Tesla’s meteoric rise and now its seemingly inevitable fall from grace. The brand that was once the epitome of environmental consciousness and innovation has become tainted by its CEO Elon Musk’s controversial political views and divisive behavior.
Towards the end of August, news outlet Bloomberg spread word of whispers that electric car manufacturer Tesla might unveil their upcoming autonomous taxi model, tentatively named Cybercab, on October 10 at the Warner Brothers studio lot in Burbank. This automobile is rumored to be exclusively designed for self-driving purposes, meaning it won’t have an accelerator, brake pedals, or a steering wheel. Instead, it will be summoned via a unique Tesla app. Recently, images of a compact yellow vehicle moving around the Warners lot, followed by Tesla production vehicles, have been shared, leading some to speculate that this could be a disguised robotaxi.
Tesla’s exaggerations, misleading statements, and failed promises about upcoming products such as the “semi” truck, a new sports car, an affordable vehicle, and a self-driving taxi have become common practice. As Tesla disbanded its public relations department four years ago, The Hollywood Reporter cannot verify if this event (which was previously delayed this year) will actually take place.
If the new Tesla launch at Warner’s proceeds, it will undoubtedly catch attention in Hollywood and spark questions about the growing friendship between Elon Musk, the CEO who is becoming more contentious by the day, and David Zaslav, Warner’s embattled leader. (Warner Bros. chose not to address the rumors about the robotaxi unveiling.) As Musk has moved further into the MAGA sphere — aligning with right-wing conspiracies, boosting hateful messages, criticizing transgender people including his own daughter, and supporting Donald Trump — his standing in Hollywood and his brand’s value have significantly decreased.
Debbie Levin, head of the Environmental Media Association (EMA), remarks that Elon is quite vocal and his political viewpoints are less favored within the sphere of the entertainment industry,” explains the situation. EMA encourages eco-friendly messaging, actions, and products to foster environmental improvements in Hollywood.
Today, Tesla’s standing in Hollywood is significantly lower than it was a decade ago, when Tesla vehicles first started gaining traction within the industry. Back then, as Levin puts it, “Tesla cars were the epitome of cool when it came to electrification.” If you had $100,000 to spend on a car, buying a Tesla was seen as a statement about caring for the environment.
As the brand grew, Southern California, known for being at the cutting edge of automotive trends, emerged as one of its biggest markets. “When you’re in Hollywood, all you seem to see while driving around the studios are Teslas,” remarks Ed Kim, president and chief analyst of Auto Pacific, a research firm specializing in mobility based in Southern California. “Teslas are everywhere.
Recently, there’s a change in consumer preferences and spending patterns in local markets. As Kim points out, Tesla has experienced a substantial decrease in sales this year, with a nearly 25% drop in sales in California alone during the last quarter. This is important because not only is Tesla losing market share compared to established luxury car brands like Audi, BMW, Mercedes, and emerging electric vehicle (EV) companies such as Polestar, Lucid, and Rivian, but it’s also seeing a decrease in sales while the overall EV market continues to expand. “While there may be positive headlines about the growth of EV sales,” Kim notes, “the truth is that Tesla is not only losing market share, but it’s actually losing sales, which makes it one of the rare exceptions among EV manufacturers.
As a passionate gamer, I’ve noticed an intriguing trend lately. The surge in disinterest towards Tesla seems to align with Elon Musk’s recent shift towards more conservative views and his online activities. Here’s what Alexander Edwards, president of Strategic Vision, a renowned consultancy in Southern California, has to say: “Tesla’s rejection among Democrats has escalated significantly, and they are actively avoiding the brand.” He continues, “There’s no secret base of Republicans secretly buying Teslas. That’s just not happening.
According to recent surveys, potential car buyers who might opt for a Tesla for their next purchase dropped by almost half compared to 2022 figures. On the flip side, the number of people unwilling to consider a Tesla has nearly doubled. This trend has shown the most significant decline this summer, coinciding with Elon Musk’s growing friendship with Trump. Moreover, these numbers continue to deteriorate in a negative manner.
Edwards suggests that changes in consumer attitudes towards electric vehicles (EVs), like Teslas, may take a while to reflect in their actual purchasing decisions in the automotive market. This is because, unlike buying non-durable goods such as beer or fast fashion, car purchases are less frequent. He notes that some individuals who currently own Teslas are so dissatisfied they’re canceling their leases and abandoning them. However, he points out that many people don’t have the financial means to do so. Therefore, we might not witness a significant shift until the next three years. But when the time for their next car purchase comes, expect a mass departure if things don’t improve soon.
Indeed, Tesla has always been an unconventional and unexpected business, and consumer reactions may deviate from typical patterns, even within the innovative realm of entertainment. As Kim points out, a massive Tesla cafe called the Tesla Diner is currently under construction in Los Angeles. There’s quite a buzz and enthusiasm surrounding this establishment, surprisingly, given its location right in the heart of Hollywood.
It appears highly probable that Musk’s provocations will leave an enduring mark, particularly within Hollywood, and considering its significant sway over consumer choices, this influence could spread far and wide – possibly across the nation, or even globally, according to Edwards. He notes, “When someone exhibits such arrogance, they tend to do and say the most foolish things.” He further compares Musk to Trump, stating that both individuals often say and do the most questionable things. If Musk persists on this course, he may find himself without a U.S.-based company.
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2024-09-20 22:54