Tesla, Musk and the New Disdain for Social Classes
This page is translated from the original post "Tesla, Musk et le nouveau mépris des classes sociales" in French.
- 25/07/2025 10:17
By stating that “ people don’t have the money in the bank to buy a Tesla,” Elon Musk is in full denial of reality.
Staying true to his role as a provocateur with often humorous comments, Elon Musk shocked his audience on Wednesday, July 23rd, during the presentation of Tesla‘s results for the first half of 2025.
To explain the staggering drop in sales at his electric vehicle company, the South African businessman dared to highlight the lack of funds among the population to afford his products.
This profound denial overlooks the numerous political controversies earlier this year that have diverted customers. However, the damage is likely even deeper for Tesla: declining revenues and the urgency for a more affordable car: an image downgrade that has caused it to step away from the Premium vision.
Today, the question is simple: is Tesla perceived as a “cheap” manufacturer?
You might be interestedin this article:
Tesla downgraded by German Premium brands?
When Tesla recorded a drop in its sales in the first half of 2025, its German rivals all experienced striking growth. In California, Tesla’s sales fell by 21% in Q1 2025, while the overall other EV brands rose by 14%. Across the entire U.S. market, Tesla’s market share dropped from 51% to 44% within three months.
In the luxury electric vehicle sector, overall growth is robust: the market anticipates an annual increase of +20%, rising from $202 billion in 2025 to $1 trillion by 2034.
For example, BMW has seen its EV sales rise by +26% in the United States, the Volkswagen Group (Audi, VW, Porsche) by +55%, and Volvo has also experienced double-digit growth. These increases benefit from a shift in clientele, weary of encountering Teslas on every street corner.
The end of a cycle for Tesla?
It seems that certain customer segments – particularly those sensitive to brand image – now see Tesla as too mainstream. Too widespread, exclusivity has vanished, as has its aura.
Wealthy customers, who are also more educated, are savvy enough not to want to publicly display their political affiliations. Yet, Tesla is now perceived as too branded for some clients.
This shift in clientele, as well as this social class opposition, is a serious mistake made by Elon Musk. By force, he will have no choice but to broaden his catalog downwards, with more affordable cars.
“People don’t have the money in the bank to buy a Tesla.” This statement will remain etched in memory and will often resurface. Because through Darwinism, Tesla will head towards the “proletariat,” those who make up the masses and consume tens of millions of cars each year.
This socio-economic disconnection, insensible to the context where many families struggle to meet basic needs, is all the more astonishing from a man who has just created his political party in the United States.
The gap in the Premium market is difficult. It took Audi three decades to reach this point, and the balance remains precarious: impossible to sell cars at €150,000 or $150,000 when starting your catalog at less than €30,000 or $30,000.
Tesla is torn: should it resist the allure of the mainstream? Its mentor himself is populist, so why this refusal of obstacles? Finally, to compete with the German brands notably, high-quality, and thus expensive, materials are needed. Everything that Teslas today lack, cars that are indeed efficient in terms of energy but whose manufacturing quality is still far below standards.
And the customer, regardless of their money in the bank, is very sensitive to this…
ALSO READ: Tesla: declining revenues and the urgency for a more affordable car
We also suggestthese articles:
Also read
