Musk denies Twitter use hurts Tesla, expects share price recovery
On an Earnings Call with investors [transcript], Musk rejects that his political influencing on Twitter is hurting Tesla’s brand.
Since Elon started political influencing, polls from Morning Consult & YouGov show Tesla brand favorability declining in 2022 and division along partisan lines. Such brand damage can impact demand. Does Tesla track favorability and how will any brand damage be mitigated?
Musk replies by citing his own popularity on Twitter:
Well, let me check my Twitter account (pause as he appears to actually pull out his phone). So I got 127 million followers and it continues to grow rapidly. That suggests that I’m reasonably popular. Now I might not be popular with some people, but for the vast majority of people, my follower count speaks for itself. I have the most interacted social account maybe in the world – certainly on Twitter.
And then talking about his impact on the brand:
I think Twitter is actually an incredibly powerful tool for driving demand for Tesla…I would really encourage companies out there of all kinds, automotive or otherwise, to make more use of Twitter and to use their Twitter accounts in ways that are interesting and informative, entertaining, and it will help them drive sales just as it has with Tesla.
Musk says he expects Tesla’s share price to recover over the long-term, though warned that he anticipated a “pretty difficult recession” in 2023 which could lead to setbacks.
We think demand will be good despite, probably, a contraction in the automotive market as a whole…There’s going to be bumps along the way and we’ll probably have a pretty difficult recession this year, probably. I hope not, but probably.