Never Stop Driving #96: Politics Is Everything
The Elon Musk Show is the gift that keeps on giving for pundits, including yours truly. This week, The Wall Street Journal posited that Musk’s political opinions are turning off Democrat buyers—one reason the company’s sales declined in the first quarter of this year.
Ahh. So now we buy cars based on political beliefs? That sounds nutty, but there’s some truth to it. Over my three decades testing new cars I came up with my own list of buyer priorities to help me predict a car’s sales success. Mind you, my formula is far from scientific; rather, it’s based on observations collected over a career rubbing shoulders with engineers, designers, product planners, and analysts across the global automotive industry.
I believe that the number one aspect, for most car buyers and not us nut job enthusiasts, is a car’s design. Then comes the infotainment system—particularly the ease of pairing cell phones—and then the brand and what it represents. Some will quibble that I’m missing rational considerations like number of seats, price, fuel economy, etcetera, and you’d be right. Hang with me though.
Our cars are like clothes: They say something about us, especially for those lucky enough to be able to afford more than a basic tool to get to work. The first mass-selling Toyota Prius, the egg-looking thing from the aughts, outsold every other hybrid largely because its distinctive (if unattractive) shape sent a clear message about the owner. The same goes for Subarus—I don’t know what the brand’s message is, exactly, but it sells a lot of cars.
We consumers are all susceptible to this image shaping, me included. I searched for and paid a premium for a silver 1990 Miata because I didn’t want to be the fifty-something dude pining for attention with a red sports car. Silly, right? Of course, if a car is junk, the right design won’t save it. People are rational but not perfectly so, which is what gave rise to behavioral economics. Humans are complicated.
Now back to Musk. Tesla cars hit three powerful points: They send the desired message, they’re generally good cars, and for a while they had the coveted shiny penny aspect. We love the new and the novel.
Musk may be turning off buyers with the provocative and controversial statements he makes on X (formerly known as Twitter) and in interviews, but the Tesla model lineup is also getting a little stale. The biggest sellers, the Model 3 and the Model Y, debuted in 2016 and 2019, respectively. Some car models, like the Toyota 4Runner, survive for years with minimal changes, but most require significant upgrades after the fourth or fifth year. Tesla is also facing more competition than it did three years ago, even while demand for EVs is cooling. And the company relinquished a competitive advantage when it recently began allowing EVs from other automakers to use Tesla’s proprietary charging network.
Musk’s politics surely have an effect, but I think those more conventional factors play a larger role. So, what’s his response? You should read the transcript of the Tesla earnings call from earlier this week. Musk and Tesla executives said that the company is accelerating the rollout of new models, including cheaper cars. They’ll arrive in about a year. The cars, Musk stressed, are the sideshow. “The way to think of Tesla,” he said, “is almost entirely in terms of solving autonomy…”
Musk said that AI engines are quickly learning from the Teslas already on our roads and operating with existing driver-aid systems. He mentioned the advantage Tesla had in its development of AI because the constraints of on-car computing meant that the Tesla software is uncommonly efficient. The company plans to show a robotaxi on August 8. Musk says that Tesla will operate a fleet of taxis and Tesla owners will be able to rent out their cars like many do with their homes on Airbnb. We’ve heard this before, and the promised delivery dates have come and gone. The difference—as it seems to this computer idiot—lies in how quickly the AI systems are learning and evolving the autonomous systems.
I’m in no position to judge the veracity of Musk’s claims. I think we’re all now used to technology hucksterism, a promised future state that’s good for the stock price but ultimately never arrives. Remember when they said the internet would allow people to share information and make us all closer? Right. Perhaps autonomy is a convenient redirect away from the aging hardware. That said, the Model 3, which has been thoughtfully updated, is now available with a $299 per month lease. While the car’s price cuts over time have certainly penalized the resale price of existing Model 3s, likely angering many existing owners and turning them off from buying another, the current Model 3 is a solid deal.
With Musk, we could be witnessing what’s often called the “Founders Curse,” where the vision and energy needed to launch a new company are not what’s needed to ensure its continued prosperity. There are ample examples to study including General Motors, which took off thanks to William Durant but then later thrived after his ouster. The New York Times recently ran this terrific summary. Food for thought.
Whatever you think of Musk, at least he’s not boring. He also sounded very excited about the humanoid robot, called Optimus, which the company plans to sell in the next 12 months. After reading the transcript my first thought was, “Maybe we should slow down a little here.” I do, however, have enormous respect for what Musk has accomplished. He is undeniably a brilliant guy.
The auto industry is never dull. Before I wish you a fantastic weekend, I highly encourage you to watch Jason Cammisa’s brilliant history of Bugatti’s short-lived return, back in the 1990s, with the EB110 supercar. This weekend, I’ll be at the Air|Water show in Los Angeles to commentate during the Broad Arrow Porsche auction. We’re broadcasting the action live on the Hagerty Samsung TV Plus network, channel 1194. If you don’t have a Samsung TV, you can watch for free here. And if you’d like to support all the free automotive content Hagerty provides, please join the Hagerty Drivers Club.
Get out and drive this weekend!
Larry
P.S.: Your feedback is very welcome. Comment below!
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Yes indeed, politics is everything these days. But in my mind, only because we insist on making it that way. Case in point: read the articles on this site and see how many of them seem to (unintentionally, IMO) invite some sort of political comment that seeks to put red vs. blue at the top of the issue. Heck, I read an online news article not to long ago, where the potential of our local cherry crop to be hurt by a late freeze was inundated by comments blaming the current administration. For FROST!
My point is that although politics are important and we should all pay some level of attention to what’s happening in the political realm, there are so many things in this life that are SO much more important to focus on. I think if we (to use Larry’s term) maybe slow down a little here and not just insist on applying a political slant to EVERY. DAMNED. THING., we might not only see a little bit of civility return to our discussions of our plights, but we might actually see that some other topics are important to life. Like number of seats, price, fuel economy, etcetera.
Our red vs blue thing has gotten very dysfunctional over the last 10 years or so. I don’t know if it is people driving the media or media driving the people, but it is definitely getting old
If we’re letting media drive us anywhere, we’re sheep, not people – jus’ sayin’.
Great article, Larry. And for the record, I just traded a 2018 Toyota 4Runner TRD Offroad for a 2024 Toyota 4Runner Offroad. Yes the infotainment is behind the others, but the rest of the vehicle is a nigh on perfect body on frame SUV with a marvelous 4 liter V6 that never has to work too hard. I plan to keep this one for ever. So using that 4Runnner as a bad example was perfect for me. 🙂
I agree that politics are influencing and driving sales of some vehicles. But I see it affecting in other ways.
Tesla is a bag of issues. I am sure there are a few sales lost to customer over his fighting the Democratic party. But the cars they are selling are old. Most people that wanted one has one. Then new product like the truck and sports car are taking years late to bring out. The company has defied the norms and I believe most of their issues are just these problems in general catching up. Their best money making car was the S. I am sure if they came out with a new different S sales of it would rack up major income with the cult following no matter the politics.
Now the other end is the non EV fan. They out number the fan of EV models by a lot. I can see some shift with non EV fans to the right. This I expect will impact the next election due to future regulations. The real trouble is that the left has used California CARB laws in other states and they are planning to force ICE out and that is 44% of the market. So even if the EPA cuts back there is no sure thing Carb states 14 of them I believe will follow.
Automakers are trying to do all they can to cover where ever this goes. Companies like GM may promote their EV models but they are still keeping a solid ICE line in place as long as they can. They even plan to introduce a new V8.
Others like Ford and Stelantis are looking for ways to pay for the EV programs and are making cuts to many engineers they will not need if they go all EV. This has led to problems in quality at both.
Toyota is trying to sell the Hybrid but the left is wanting all EV not hybrids so they may die at the same time as ICE. Others are partnering to save cost like Honda. I also expect some will not make it or merge.
The market also will be hit with many Cheap Chinese cars built in Mexico unless the government steps in to stop them.
So to be honest I don’t see a lot of people buying specific cars because they are Democrat or Republican but I do see them buying the cars they want and may end up supporting those who back what they want. The trouble is many of the people in these agency’s that make the rules are not replaced after elections. The Democratic party has passed laws that make it difficult to replace appointed people in some branches lately.
The long and short I expect the market will be forced to sell cars that the public will not like and the MFGs will struggle with this and some damage will be done. This is not going to help a very damaged economy and interest rates.
People are keeping cars 12 years on average and I expect that may increase till they pass law making it difficult to keep an ICE model. In Japan they charge higher taxes on cars as they age to remove them from the road. I can see that coming here at some point or make Gas too expensive to buy as it already is in California for many. We already are losing the oils we need for older cars too. You may keep your car but you will not be able to run it. Converting an old muscle car is point less as the engine is what makes it what it is as does the sound, noise smell and vibration.
To quote a famed car enthusiast and Parrott Head we just lost. “Things are Simply Complicated”.
There is no conspiracy this is just what is going on and it is not the will of the majority. So it may get interesting. They thing things are divided now it can get worse.
So the long and short of it is Elons politics are very mixed and while it may have hurts some sales we have a whole lot of more major issues in play that will be much more challanging.
Make no mistake about it. the greenies do want to remove every ICE car on the road. I just read a think tank article and they were very clear that older cars are going to face a barrage or financial penalties to rid the earth of them. All of this in the face of facts that vehicle pollution form 1970 is already down @98%. There hasnt been a significant drop in that rate in the last 5 years.
Ultimately the public still has the power to just say NO to the insane EV world. Just read about england where Vauxhill says they will leave britain as the rules will force them to sell cars for less that it cost to make them.
Yes we will face many challenges. Some think I am a conspiracy guy but I work in the industry and see the many challenges and what is going on globally,.
There are areas in the US that want to limit ICE models on just where they can drive in California. They do it in Europe now and I expect these ideas to spread.
People need to really start taking an interest in what is going on as there are even more insane things we will face.
The shame is so many now can’t even name who is VP or who their Senator is. It is no wonder we are being faced with many thing that we do not approve.
I truly think our economy is under fire by the Chinese and many others. They can destroy us as it would destroy their economies but they can limit and damage us to make it weaker so we have to comply with what they want vs the US leading.
The tools they use is Fiscal equality and other means like Emissions.
Just look at these protesters with ready made signs and $500 tents on all these campuses. They are being supported from out side the country.
I don’t understand the optimistic view of autopilot cars. There have been 736 crashes according to the Washington Post and 17 were fatalities since 2019. I recall reading about one where the guy ran broadside into a large trailered truck in FL (fatality), another which ran into a parked ambulance, and another driver killing a bicycle rider (I’m not sure if all of these were Tesla cars). People need to understand that automatic machines can do really stupid things that a human would never do. And this is on roads that were clear. I don’t know how they expect them to work on snow covered roads and with other road hazards! Of course, its because people trusted way too much in the autopilot and were doing something else instead of DRIVING! But people that don’t understand technology like that think they can trust it, and who’s to blame when the technology keeps being hyping the way it has. Machine vision is a very complicated thing and shouldn’t be trusted to make decisions like this. I’ve been a software developer for over 40 yrs and I would say that the technology is NOT ready… and may never be.
I don’t understand the interest in not wanting to drive yourself. I don’t understand infotainment systems which are glorified, oversized versions of the phone you have in your pocket – which you shouldn’t be using while driving anyway. Probably why I collect older cars
Couldn’t agree more Larry! Cars are like clothes and are chosen by the general public with many of the same decision criteria.
Hi Larry, I can PROVE that “Politics is Everything” !
I just SOLD the first Canadian-registered vehicle on HAGERTY Marketplace, and the Buyer lives in the TRUMP-loving state of Florida. What vehicle attributes screams the TRUMP brand ?
LOUD !
BRASH !
BRUTISH !
DODGE VIPER !
wow, you sure missed the mark with your political comments.
Especially in this forum.
With some cars (and other things), tech, features, ‘new’ means everything, because some buyers only shop for ‘new’. That’s been a lot of Apple’s success, but they’re running out of advancements that people will buy new phones to get. Even more pixels? yawn. More camera lenses? again, yawn.
Other buyers value quality of build, durabilty and long term reliability more than ‘new’, and the 4Runner has been that in spades. Magazine writers are notorious for griping about things like solid axles, auto transmissions with fewer than six-eight-10 gears and platforms that are ling in the tooth, but a lot of buyers view advancements with skepticism. We see independent rear suspensions and wonder about tire wear, load capacity and what parts will need replacement, and when. We see sub-four liter engines with turbos and wonder ‘how long will that last?’ and ‘what will it cost to rebuild or replace?’ A lot of us keep cars 10 years or more (or buy them when they are already that old); we want them to be predictable and serviceable. Fuel economy savings are often false for the long term owner; when something expensive (like GM’s AFM lifters) fail after warranty, that four figure hit means all the fuel savings just evaporated. Even if the owner doesn’t fix it, the damage to its value (both the broken car and those that didn’t break yet but are likely to) costs money. And cars tgat get junked instead of used more do more to the environment than saving two mpg would have offset.
As to politics, some people care, some don’t. It depends upon the forcefulness of the political viewpoint and the product. Elon’s big problem is his stale product line combined with the fact that EV interest is at a plateau now. His little problem is his politics.
Maybe. But add to the politics the increasing realization of the limitations of eVs, at least for the present: Battery drain, charging time and availability, effects of cold weather, and the true accounting of environmental costs. For most people, buying a hybrid makes a lot more sense.
I agree that many of us wear our cars like clothing. We are either sold, or recognize, a certain image that we identify with, and we buy the car that projects that image onto us. Regarding the Prius, I think there were a few factors that helped support its sales – it was made by a brand trusted for quality, it had a shape that screamed non-aggressive, and it was ostensibly environment-friendly. You never saw any John McCain bumper stickers on a Prius. Not that there was anything wrong with John McCain. The car made a clear statement about its owner. Suburu became the adventure brand for the oat milk decaf latte crowd. A Jeep for knobby tire haters. As for Tesla, they are just the new toy for people with a few extra dollars. But once the range and charging issues are resolved (which they will be) they will fly off the shelves, especially if (and please, Elon) they bend the sheet metal into something that looks a little less like a Prius, and a little more like a Porsche.
Silver was not an available color on a 90 Miata. They were offered only in red, blue and white the first year.
They only came in red and a two-toned blue and white?
I love it (not) when someone posts a link to an article on a media source that I don’t subscribe to.
Sorry Kevin! I thought the link supplied a one-time view. Will adjust in the future.
Funny how people that are on the left still own and drive cars like Gates and his 959 Porsche and Jobes and his series of BMW cars.
There is a bit of everyone on each side of this. I know many Democrat’s that are not EV fans. It just happens most EV fans are Democratic not the other way around.
Just like not every Trump Voter has a truck or brash VIper.
We try so hard to label people to hurt them politically and the truth is you can’t able everyone.
I am not a Geen supporter but I am not against being a good agent for the environment with good management of all aspects not just eliminating everything. there is a balance out there we can maintain and the environment is much more resilient than many give it credit for.
Like deer. I love deer but we do need to control and remove a number of them per year as they do a lot of damage and are a danger on the streets. Also in their own population if not controlled they all are damaged and often die from starvation and sickness. It takes management both ways for things to stay in check.
You kill off industry you lose the money you get to fix things in the environment. It is a two way street.
I don’t need ‘infotainment’. I need entertainment, which means a six speed manual, and a chassis and engine that allows me to push it at each corner. At 77 years old, I don’t need some wussy EV to proclaim how ‘aware’ I am. I look after the environment as much as I can, and always have done, so don’t push some greenwashing campaign down my throat.
Politics is going to be around for as long as humans exist, and I don’t mind people adhering to their belief systems and influencing their purchases. Don’t mind EVs either, but I’d rather not purchase from a company run by a conspiracy-spewing CEO. I still believe that the only way older cars are going to be allowed to run on the roads is if public transport is given a massive boost in density and proliferation. Whoever does not need a car/doesn’t like driving can utilize transit and everyone else can drive their cars.
I don’t give a damn about Musk, his comments, politics or his cars. I’ll stick with my gas engine cars. At least they won’t have a recall for their steering wheels falling off.