Elon Musk may not be purchasing Twitter, but he has cemented his reputation as a free speech advocate. The Tesla CEO has become a conservative hero, with many hailing him as a hero prepared to stand up to the “tyrants of big tech” who were threatening their right to free speech. Musk is now expected to back out of the agreement, but his standing as a conservative idol is greater than ever. Musk has uncovered a secret asset that may help TSLA stock by gaining this image for himself.
Musk just revealed his political allegiances in a tweet:
For a long time, though, his conduct has resembled that of a conservative. He fought with both Bernie Sanders and Elizabeth Warren in 2021 about the planned billionaire’s tax. Since that time, he has been quite vocal in his criticism of President Joe Biden for his refusal to recognize Tesla as the leader of the electric vehicle (EV) industry. Despite Secretary of Transportation Pete Buttigieg’s admiration for Musk’s firm, the CEO has maintained his anti-Democratic and anti-“left” position.
Musk’s flaming conservatism was favorably received by right-wing people and politicians throughout it all. They rejoiced when he offered to pay $44 billion for Twitter for the cause of free expression. This was a huge success for conservative voters who had accused the platform of limiting their party. Many right-wing lawmakers have tweeted their support for the agreement.
Musk now has new influence as a result of his demagogue position. He probably didn’t start criticizing Twitter with this purpose in mind, but he has succeeded in persuading conservative Americans to switch to electric vehicles. People who drive gas-guzzling trucks and SUVs are needed in America to move to electric vehicles. Furthermore, evidence shows that Republican voters prefer heavy-duty pickup vehicles and luxury SUVs, whilst Democrats choose compact and mid-size automobiles.
What Does This Mean for the TSLA Stock?
According to Bloomberg’s Matthew Yglesias:
People who are already more environmentally sensitive than the norm in America are the most likely to acquire an electric automobile. The folks who need an electric automobile the most in America are those who drive their gasoline-powered cars more than the norm.
This is where Musk enters the picture. Many conservatives have been hesitant to accept electric vehicles because they regard them as symbols of elitism. However, evidence reveals that conservative views of Tesla are increasingly shifting. According to a Morning Consult study conducted in early 2022, the number of Republicans contemplating purchasing a Tesla is on the rise. That number is likely to have risen since Musk’s bid to buy Twitter.
If this pattern continues, the value of TSLA will skyrocket. Conservatives like vehicles made by iconic American firms like Ford and General Motors. Both businesses have developed EVs that are less expensive than Tesla’s, but they have failed to entice conservative drivers. Tesla has done just that, proving that Republicans respect Elon Musk enough to pay a higher price for one of his cars. Musk should keep creating electric vehicles if he actually wants to serve mankind as much as he promises. It will hasten America’s shift to a more sustainable economy while also boosting TSLA shares.
Source: InvestorPlace