Business
Can Trump and Musk Convince More Conservatives to Buy Teslas?
After climbing into a Tesla Model S last week, President Trump pledged to buy one. The next day, the Fox News host Sean Hannity said he had bought a Model S Plaid to support the embattled company, saying a Tesla “has more American parts in it than any other car made in our country.”
In a backlash to the backlash against the tactics of Elon Musk’s Department of Government Efficiency, prominent conservatives are rallying to the side of the electric car company led by Mr. Musk. They are hoping to swing enough like-minded consumers to offset a boycott of the electric automaker by liberals and Democrats or anyone offended by Mr. Musk’s actions.
But how effective can such a rescue mission be? Analysts say it can help but only to an extent.
So many Democratic buyers appear to be fleeing Tesla that even Mr. Trump’s best sales pitch is unlikely to woo enough new customers to fill the vacuum, auto experts said. Analysts at JPMorgan predict Tesla will deliver its fewest cars in the first quarter than it had in three years.
“When you make your product unattractive to half the market, I promise you, you won’t increase your sales,” said Alexander Edwards, president of Strategic Vision, an automotive research and consulting firm.
Mr. Edwards has been surveying car buyers for decades. Since 2016, the surveys have found that electric-car owners were up to four times as likely to identify as Democrats or liberals as to identify as Republican or conservative. Among Tesla owners, the spread was consistently two to one.
The gap narrowed sharply through 2024. This year, as sales have fallen, slightly more Tesla buyers identify as Republicans than Democrats, at 30 percent versus 29 percent.
“Democrats are fleeing the brand and saying they won’t consider it in the future, so there is naturally a greater proportion of Republican and independent buyers,” Mr. Edwards said.
He said Democrats first started losing interest in Tesla when Mr. Musk bought Twitter, now X, in 2022. Then, last July, when Mr. Musk publicly backed Mr. Trump, the share of Democrats who said they would “definitely consider” a Tesla fell by half.
Overall, about 8 percent of car owners would now definitely consider a Tesla, according to Mr. Edwards’s surveys. That compares with 22 percent five years ago, when Tesla often topped rankings of luxury brands that buyers would consider.
Tesla’s slipping sales, he said, “are mostly, if not completely, attributed to the statements and behavior of Elon Musk.”
The automaker did not respond to a request for comment.
Tesla remains America’s best-selling electric vehicle brand by far with about 44 percent of the market, despite a 5.6 percent drop in U.S. sales, to about 634,000 cars in 2024, according to Kelley Blue Book. Many drivers are determined to stick with the electric vehicle pioneer, whose cars can travel several hundred miles on a charge and can be easily refueled at the company’s extensive charging network.
Josh Anders, 44, traded a gasoline-powered sport utility vehicle for a Tesla Model 3 in 2019. A resident of Fort Wayne, Ind., he was blown away by the car’s energy efficiency, technology and limited maintenance needs. He soon traded for another, and is about to take delivery of the latest Model Y S.U.V.
“Owning a Tesla was one of the best decisions I ever made, and I’m sticking by it,” Mr. Anders said. “I would love a Rivian R1S, but I can’t afford it. I’m a tech guy, and I love all the features and innovations.”
Mr. Anders, a father of four and creative director of a Christian nonprofit music and arts organization, said he leans conservative, and is uncomfortable with boycotts.
“Elon’s not perfect, and Tesla’s not perfect, but it’s a community of dreamers and doers. I appreciate a brand that’s constantly pushing the boundaries,” he said. “I don’t need every company to share my beliefs. I just need them to share a commitment to progress.”
Still, cars have a long history of becoming part of the political fray.
The Chevrolet Volt, a plug-in hybrid introduced in 2011 after General Motors received federal government assistance, was derided by some conservatives as the “Obamacar.” The fuel-sipping Toyota Prius and the gas-guzzling Hummer from G.M. were often lauded and attacked by people on opposite ends of the political spectrum.
Isaac Seliger, a business owner and grant writer in Scottsdale, Ariz., said he’d had little interest in electric vehicles even though his son, who died recently, was a devoted fan of Tesla.
Now, said Mr. Seliger, who described himself as politically independent, he is determined to buy a Tesla, because he wants to defy groupthink and polarization. A friend told him that she would stop speaking to him if he did.
“As a former lefty and antiwar guy, this all makes me want to buy a Tesla more,” Mr. Seliger, 73, said. “I’ll absolutely be making a political statement. But if I bought a Porsche Macan, that’s a statement, too, where people pigeonhole you as an obnoxious older Porsche driver.”
Mr. Seliger added that he found criticisms of Mr. Musk overblown.
“So Elon was a hero of the left, and now he’s a Nazi? That’s just crazy,” he said. “He strikes me as a smart guy who makes great stuff.”
To many people who have faith in Tesla and Mr. Musk, the company’s sales and stock price, which is down about 48 percent from a December high, will eventually recover. The stock was up 12 percent over the last four days of trading.
But some automotive experts say Tesla may struggle because the company has not regularly updated its cars or introduced new models. In addition, the company’s chargers, which once could be used only by Teslas, are opening access to nearly every major competitor, said Loren McDonald, chief analyst at Paren, an electric vehicle charging data firm. And other automakers are offering new electric models, often with notably affordable monthly payments.
“He’s rapidly losing the advantages in range, tech, value and convenience that drove people to Tesla,” Mr. McDonald said. “For a lot of people, it’s time to move on and try something new.”
Of course, most buyers don’t choose cars based on politics. But a brand’s image matters. Tesla sales slipped even as overall U.S. electric vehicle sales grew 7.3 percent in 2024, to 1.3 million. Mr. Edwards said Mr. Musk was making it too easy for people to shop elsewhere.
“People can love their Hyundai, G.M., Rivian or BMW just as much,” he said.
Republicans certainly buy electric cars, but fewer of them have made the plunge to fully electric models. Rural states, where Republicans outnumber Democrats, have fewer chargers than more urban states. Strategic Vision data shows Republicans are more likely to work outside the home, and are less willing to put up with inconveniences like long charging stops. And a 2024 Pew Research Center survey found that more Republicans than Democrats say electric vehicles cost too much and are less reliable than gasoline cars.
In the New York metropolitan area, the nation’s largest car market, new Tesla registrations fell 13 percent, to 47,000 cars, in 2024, according to S&P Global Mobility. That same year, more than 101,000 people registered a Tesla in Los Angeles, the second-largest market, a drop of 8 percent. Still, nearly one in eight new cars in Los Angeles was a Tesla. In the San Francisco Bay Area, where Tesla was founded, nearly one in five new cars was a Tesla. But sales tumbled 17 percent to 54,000 cars.
Consumers in the Houston area bought 12,000 Teslas. But Bay Area residents bought 4.5 times as many Teslas, in a smaller market for new cars overall. Some areas saw big increases, including Miami-Fort Lauderdale where sales jumped 32 percent, to nearly 23,000 cars, in 2024. Tesla sales also rose sharply in Salt Lake City, Las Vegas and St. Louis. But the company’s gains in these places could not offset steeper declines in larger, more liberal metro areas.
Experts say wealthy conservatives such as Mr. Hannity and Mr. Trump have the disposable income to make a personal automotive statement by opting for a Tesla. But they may not be able to persuade Americans of more modest means.
Mr. McDonald also noted that Mr. Trump and other conservatives had spent years vilifying electric cars, mocking climate change and criticizing former President Joseph R. Biden Jr.’s climate and auto policies.
“The messaging is inconsistent,” Mr. McDonald said. “Is the guy in Arkansas who drives a Ram pickup going to buy a Tesla now? How far can you go against your own beliefs to support Elon Musk?”
Business
U.S. Targets Iran’s Missile and Drone Program With Sanctions
The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.
The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.
China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.
The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.
“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.
The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.
U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.
The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.
Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.
“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.
Business
General Motors to pay $12.5 million to settle claims that it illegally sold California driver data
General Motors has agreed to pay $12.5 million dollars to settle claims that the automaker illegally sold location and driving data of hundreds of thousands of Californians, state officials said Friday.
The settlement is an example of how automakers are facing more scrutiny over allegations that they share driver data with the insurance industry, influencing how much people pay for coverage. California, though, has a law that bars insurers from using driving data to set rates.
“If we get word that a company is illegally collecting, storing or selling consumer data, we won’t hesitate to look under the hood and hold them accountable to the law,” California Atty. Gen. Rob Bonta said in a news conference.
The settlement is the largest California Consumer Privacy Act penalty in the state’s history, Bonta said.
The act gives California consumers the right to request that businesses disclose what data they collect. They can also opt out of the sharing or sale of their personal information and request that businesses delete their data.
Investigators found that from 2020 to 2024, GM sold driver data, including names, contact information, location data and driving behavior data, to data brokers Verisk Analytics Inc. and LexisNexis Risk Solutions. The data came from a driver’s use of OnStar, which is owned by GM and provides roadside assistance, navigation and other services.
GM said the agreement addresses a product called OnStar Smart Driver that the company discontinued in 2024. The product was meant to help improve people’s driving but faced privacy concerns from consumers. In 2024, GM also ended its partnership with the two data brokers and said it would enhance privacy controls.
“Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information,” a GM spokesperson said in a statement.
Various district attorneys throughout the state, including in Los Angeles and San Francisco, were involved in the investigation and settlement.
Technology has been playing a bigger role in the auto industry, but the data collected from drivers can reveal personal information about people’s daily habits, including where they drop off their kids and doctor visits.
The California Privacy Protection Agency in 2023 started investigating the privacy practices of connected cars. As the state was looking into the automakers, the New York Times reported in 2024 that GM was sharing consumer driving behavior with insurance companies. Nationwide, GM reportedly made roughly $20 million from selling data to Verisk and LexisNexis.
The state’s privacy protection agency has taken action against other automakers before. Ford Motor Company was fined $375,703 in March and Honda was fined $632,500 in 2025 for privacy violations.
Under the GM settlement, which still needs court approval, the automaker would delete any driving data the company kept within 180 days and request that the two data brokers do the same. They would also stop selling driving data to consumer reporting agencies for five years and develop a privacy program that includes assessing and mitigating the risks of data collected from OnStar.
California’s settlement with GM came after the Federal Trade Commission in 2025 also took action against the automaker and OnStar for its privacy practices, barring them from disclosing location and driver behavior data to consumer reporting agencies for five years.
Business
Trump’s Latest Tariff Setback Looms Over China Talks
A day after a federal court ruled against President Trump’s latest global tariffs, his administration returned to the drawing board on Friday, trying to preserve its powers to wage economic warfare in time for high-stakes trade talks with China.
The latest legal blow concerned the 10 percent tariff that Mr. Trump imposed in late February on nearly all U.S. imports. The president unveiled that policy as a sort of temporary fix, after the Supreme Court tossed out his initial duties, but a panel of judges once again found that the White House had run afoul of the law.
The result was a familiar set of headaches for Mr. Trump, who has tried repeatedly — and with mixed success — to stretch his authority to tax imports without the express permission of Congress. By Friday, one of the president’s top aides signaled that an appeal was imminent, echoing the president, who told reporters shortly after the ruling that he would simply “do it a different way.”
Technically, the Court of International Trade only declared the president’s across-the-board, 10 percent tariff to be illegal. Otherwise, it did not issue an order forcing the government to stop collecting it from all importers, at least for now. Still, the outcome marked both a political and legal setback for Mr. Trump, who had spent much of the week issuing trade threats against Europe and preparing for talks in China.
Tariffs are expected to be a major topic on the agenda when Mr. Trump travels to Beijing to meet next week with his counterpart, Xi Jinping. Trade experts said the court decision could undercut the president’s leverage. Eswar Prasad, a professor of economics at Cornell University, said the ruling “severely handicapped” the administration’s ability to employ tariffs against foreign nations, leaving Mr. Trump with a “much weaker bargaining hand” when it comes to China.
“Any threats by Trump to hit China with broader and higher tariffs if Xi doesn’t bend to his will on economic and geopolitical matters now seem like empty bluster rather than credible ultimatums,” he said.
One of the president’s top trade advisers, Jamieson Greer, appeared to brush aside some of those concerns on Friday. During an interview on Fox Business, he criticized the court for ruling against the White House, claiming that some of the judges on the panel were “apparently just hellbent on importing more from China.”
Mr. Greer, who defended the president’s use of trade powers, added that the administration is “confident on appeal we’ll be successful.”
At the heart of the matter is Mr. Trump’s decision to invoke a trade power that no president had ever used. Known as Section 122 of the Trade Act of 1974, it permits the president to impose tariffs up to 15 percent for 150 days, but only in response to strict conditions, including a “balance of payments” crisis.
The term itself reflects a bygone concern from the time the law was adopted, when the U.S. dollar was pegged to gold, creating unique economic risks. But the Trump administration sought to argue that the law still applied today, pointing in part to the country’s persistent trade deficit, a different measurement, which reflects the gap between U.S. imports and exports.
In the end, a majority of judges on the Court of International Trade found the argument unpersuasive and sided with small businesses and states that had sued. It marked the second time that some of those challengers had prevailed against Mr. Trump, after they convinced the Supreme Court to invalidate his earlier use of emergency powers to impose withering tariffs.
The new decision raised the odds that the administration could soon have to pay back the billions of dollars collected from its 10 percent tariff, on top of the $166 billion that the government already owes to U.S. importers from its last legal defeat. But the fight appeared far from over, and much remained uncertain by Friday — not just for American businesses, which paid the cost to import goods, but for the Trump administration itself.
“President Trump has lawfully used the tariff authorities granted to him by Congress to address our balance of payments crisis,” Kush Desai, a White House spokesman, said in a statement. “The Trump administration is reviewing legal options and maintains confidence in ultimately prevailing.”
For one thing, the court only appeared to bar the collection of the president’s 10 percent tariff for some of the plaintiffs that sued, many legal experts said. That raised the odds that droves of U.S. businesses could soon mobilize and “file a court case” of their own asking for similar relief, said Ted Murphy, a top trade lawyer at the law firm Sidley Austin. He added that he also expected the trade court to pause implementation of its order pending an appeal.
The timing is important to Mr. Trump, who had always envisioned his across-the-board tariff as a stopgap that would allow the government time to prepare a set of more lasting rates using another set of authorities, known as Section 301. But that process was widely expected to take months, since the law requires the government to conduct investigations into other countries’ trade practices before Mr. Trump can apply new duties.
Those inquiries targeting dozens of countries are well underway, and the president at times has suggested the final rates could be set at new highs. Some experts believe the tariffs imposed using Section 301 could be more legally durable, though the administration could still face lawsuits over his aggressive use of the law.
Michael Lowell, the chair of the global regulatory enforcement group at the law firm Reed Smith, said the White House probably would not have to worry about “a broad attack on that authority.” But, he said, the courts had recently drawn something of a line in the sand, suggesting they would be “very skeptical of the administration looking to the past and finding and repurposing” other powers to advance its trade agenda.
Unlike the president’s other trade gambits, he has successfully applied tariffs in the past using Section 301, including on China. That left some analysts to conclude that Mr. Trump, while blemished, would still retain some leverage ahead of his trip to Beijing next week.
“Unless they have amnesia, China should remember quite vividly how during Trump’s first term, the U.S. imposed multiple rounds of tariffs under Section 301 on China during negotiations,” said Sarah Schuman, a former U.S. trade official who is now managing director at Beacon Global Strategies.
The administration still had multiple options “to increase tariffs on China in pretty short order,” she added.
Mr. Trump’s trip to China had been scheduled for April, but was delayed because of the war in Iran. U.S. officials have said their goals for the visit include establishing a “board of trade,” which would oversee commerce between the countries in an effort to balance trade and reduce the U.S. trade deficit with China
On Friday, Mr. Greer sketched out a long list of concerns that the administration planned to raise with its Chinese counterparts, from its adherence to past purchase agreements to its approach to artificial intelligence.
“There’s not really a situation where we go, we get China to change the way they govern, the way they manage their economy; that’s all baked into their system,” he said. “But I think there is a world where we find out where we can optimize trade between China and the U.S. to achieve more balance.”
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