Tesla tests limits of brand politics as Musk readies for government role under Trump

In a follow-up article on Elon Musk and Tesla, I was joined by Hakan DOĞU, Chairman of Alagan.Tech Solutions, in sharing comments with Tala Michel Issa for Arabian Business on Musk’s risky experiment mixing luxury EVs, US presidential politics, and US-China relations.

Hakan commented that “Placing a brand at the centre of political discourse is never a wise strategy”, adding that “While Tesla and Elon were once seen as heroes of the green transition in Europe, he has now adopted an extreme-right political profile”. On the future of US government subsidies for EVs, he reminded readers that “Tesla makes $8,000 profit per car. If the US tax credit ends, other legacy carmakers will likely be forced out of the EV market.”

Focusing on Tesla’s involvement in the China market, I commented that “Having Elon Musk act as a middleman between Washington and Beijing could have a pacifying effect on US-China trade and tech relations”, reminding readers about his close connections with China’s current Premier Li Qiang. An opinion shared by Hakan, who added that “Tesla’s unique status as the only Western car manufacturer still active in China suggests it will be a prominent topic in US-China trade negotiations.”

Reflecting on the broader relationship between corporate brands and political power, Hakan concluded by warning that, “with unpredictable figures like Trump and Elon,” “investors should brace for a “highly volatile” ride“.

Read the full article here.

Picture credits: Bloomberg