Is a Backlash to Elon Musk’s Politics Hurting Tesla?

Elon Musk may be a drag on Tesla’s (TSLA) business—at home and abroad.

Registrations of Tesla vehicles reportedly plummeted 76% in Germany last month, evidence of a consumer backlash against the electric vehicle maker in protest of CEO Musk’s political efforts. Former Canadian finance minister Chrystia Freeland, who is campaigning to take over from outgoing Prime Minister Justin Trudeau, has floated the idea of imposing a 100% tariff on Tesla vehicles in retaliation for Trump’s 25% tariff on Canadian goods.

And in the U.S., Musk’s close ties to President Trump’s administration have alienated some eco-minded Tesla owners and prospective buyers. Some Teslas have been vandalized in the wake of Trump’s re-election.

The degree to which Musk may be hurting Tesla’s brand is disputed by investors and analysts. Some are more concerned about his focus on government affairs at the possible expense of time spent on Tesla. Still, recent polling and market data indicate the possibility of a backlash.

Goldman Sachs analysts in a note Wednesday lowered their forecast for first-quarter sales, citing the rollout of a new Model Y and weaker-than-expected demand. The analysts said that surveys from data provider HundredX showed consumers’ trust in the Tesla brand and intent to buy Tesla vehicles have “declined meaningfully” since the summer.

Musk was a vocal supporter of the far-right Alternative for Germany during the country’s federal elections last month, appearing at an AfD rally in January. More than 70% of German respondents expressed an unfavorable opinion of Musk in a January YouGov poll, with about the same amount saying his efforts to wield political influence were unacceptable.

Tesla’s German sales slump may reflect a growing international backlash to Musk. European Union registrations fell 50% in January, while total battery electric vehicle registrations increased by 34%. Shipments in China were also down nearly 50% in February, according to Bloomberg reporting of data from China’s Passenger Car Association.

The used Tesla market is becoming increasingly tough for sellers in the US. According to data from CarGurus, the average used Tesla price has fallen 4% in the last 90 days, more than twice the average for all cars.

Tesla shares were edging higher Wednesday. Some competitors’ shares soared on hopes the Trump administration will ease the tariff burden on automakers. Tesla stock has slumped nearly 36% since Donald Trump’s inauguration, nearly erasing all of its post-election surge.