Investing.com -- Elon Musk’s increasing involvement in politics could be damaging Tesla’s already struggling electric vehicle sales, according to China’s Passenger Car Association (CPCA). 

While the association doesn’t analyze international politics, Bloomberg said in an article that the organization’s secretary general warned that Tesla’s brand perception is shifting due to Musk’s political positioning, which may be impacting demand.

The report states that  CPCA Secretary General Cui Dongshu said during a briefing on Monday that Tesla (NASDAQ:TSLA) is being viewed by some people as political and that’s impacting the company in the short term.

He reportedly added that a successful businessman should appeal to the entire market rather than aligning with political factions. 

“But if you look at it in terms of voting, then half of voters will be friendly to you and half of them won’t,” Dongshu was quoted as saying.

Tesla’s stock initially surged after Donald Trump won the U.S. presidential election, with investors expecting Musk’s ties to the administration to benefit the automaker. 

However, the stock has since suffered, with Bloomberg highlighting seven consecutive weekly declines as concerns over weak sales intensify.

In key markets, Tesla’s deliveries have plummeted. Sales in Germany dropped 71% in the first two months of 2025. French sales also slumped by 44% in the same period, said Bloomberg.

Meanwhile, Tesla’s China shipments fell 49% in February. Cui attributed the decline to a slow period during the Model Y upgrade rather than political factors. 

However, Bloomberg noted that overall EV and hybrid sales in China surged 80% in February, underscoring Tesla’s underperformance compared to competitors.

Related Articles

Musk's political venture risks hurting Tesla - Bloomberg

Wall Street drops on trade war concerns; Tesla slides

Elon Musk's X platform experiences outage in US and UK