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 | Dauphine, A409 |
Political Identity and Consumer Behaviour: Musk and Tesla in Germany
We study how a political identity shock affects high-stakes consumption choices. Late in 2024, Elon Musk endorsed Germany’s far-right Alternative für Deutschland. We document that after this, Tesla sales rose by up to 30 percent in right-leaning districts relative to left-leaning ones, without measurable substitution to other electric vehicles. Divestment in second-hand markets shows no partisan differences, consistent with resale requiring a larger identity cost from Tesla’s image shock than non-purchase. Our lower bound-estimate for the overall loss in Tesla sales is 6500 vehicles in the first half of 2025, worth at least €241 million.
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