In recent years, Elon Musk, the CEO of Tesla, has increasingly shown his inclination towards controversial political views and alliances, sparking concerns about the future of the electric vehicle giant. As Musk's public comments and associations become more polarizing, some experts suggest that his actions may alienate a significant portion of Tesla's customer base.

Last week, Musk made headlines when he announced plans to move both X's and SpaceX's headquarters out of California, following Tesla's decision to relocate to Texas. This move, coupled with Musk's increasingly outspoken political views, has raised questions about Tesla's future prospects.

Since acquiring Twitter, now known as X, Musk has ventured into the realm of politics, often using the platform to voice his complaints about diversity initiatives, spread claims of election fraud, criticize vaccinations, and issue critiques of the Biden administration's policies on immigration and border security. These controversial tweets have brought attention and controversy to the Tesla brand, which has traditionally been closely associated with Musk's visionary leadership.

Critics argue that Musk's divisive public statements may have far-reaching consequences for Tesla's business. Mark Spiegel, a Tesla short seller, expressed concerns that Musk's recent actions have alienated a significant portion of Tesla's customer base, stating, "He completely alienated most of his buying base... It's going to kill the business."

Furthermore, Musk's alignment with former President Donald Trump and Ohio senator J.D. Vance, both of whom have voiced opposition to pro-EV policies and clean energy, raises additional concerns. Trump, despite expressing admiration for Musk and his donations to aligned groups, has labeled electric cars as a threat to the U.S. auto industry and has suggested rolling back pro-EV regulations in exchange for support from the oil lobby.

There are also fears that a Trump administration, if it were to come to power, would seek to repeal the $7,500 federal EV tax credit, implemented by President Biden through the Inflation Reduction Act of 2022. In contrast, Vance has proposed a tax credit for gas-powered cars, signaling a potential shift away from supporting EVs.

While the rollback of the federal EV tax credit would undoubtedly impact Tesla's sales, Musk seems undeterred. In a post on X, he boldly proclaimed, "Take away the subsidies. It will only help Tesla," indicating his confidence in the company's ability to navigate new challenges.

However, industry experts remain cautious about Tesla's future, as Musk's controversial stances and political alliances threaten to erode the company's reputation. With rivals offering alternative options for consumers interested in electric vehicles, some Californians, traditionally strong supporters of Tesla, may begin to seek alternatives without the baggage of supporting Musk.

As Tesla moves forward, it is yet to be seen how the interplay between Musk's political endeavors and the success of the company will unfold. For now, the future of Tesla hangs in the balance, with the outspoken CEO's actions and associations casting a shadow over the beloved electric vehicle manufacturer.