SG Tesla enthusiasts unfazed by US politics, but analyst says ‘it may eventually catch up’ when Trump’s tariffs hit the city-state’s economy

SINGAPORE: Singapore Tesla enthusiasts are reportedly not concerned about how American politics affects the car brand, even as CEO Elon Musk’s support for US President Donald Trump has led to plummeting sales, protests, and reports of Tesla cars on fire in Europe and the US. While Tesla’s image took a hit overseas, buyers in Singapore said their decision was based on the car’s performance and had “nothing to do with Elon.” However, an analyst warned that this attitude might change if Mr Trump’s tariffs started affecting Singapore’s economy.

Earlier this month, Tesla’s shares fell 15%, its worst single-day drop since September 2020, after UBS Group analyst Joseph Spak reduced his estimate for Tesla’s first-quarter deliveries to 367,000—16% lower than his previous projection— and predicted that Tesla car sales would decline by 5%.

Meanwhile, in the city-state, data from the Land Transport Authority revealed that 262 new Tesla cars were registered in Singapore in January and February this year, up from 137 during the same period last year.

According to Bloomberg, in a live-streamed “all-hands” Q1 2025 meeting on X, Mr Musk noted the popularity of Tesla’s Model Y, saying it remains the “best-selling car on Earth.”

Channel News Asia (CNA) reported that Model Y enthusiasts in Singapore, like 40-year-old Model Y Long Range owner Mr Alvin Khoo, said, “Politics are macro factors which only have a temporary effect on the brand. What matters are the intrinsic factors of the company.”

Describing his experience with the car he bought in April last year, he said, “It’s a good car with one of the best technologies, and it’s a very comfortable ride,” adding, “That’s all that matters when I decide to buy the car.”

58-year-old accountant and Tesla Model Y owner since 2022, Mr Malcolm Loh, shared a similar view, saying, “My choice of getting a Tesla had nothing to do with Elon at all, just like my choice of buying Apple iPhones over the years has nothing to do with Tim Cook (Apple’s CEO).”

However, Singaporean Jason said he didn’t care about Tesla’s image, and his only worry was the car’s resale value. “I don’t think Singaporeans are too affected by what goes on in the US. The Singapore car market is robust (and) I don’t foresee its resale value going lower than normal depreciation,” he said.

Sociologist Tan Ern Ser from the Institute of Policy Studies said this may be because not everyone in the city-state followed US politics closely or saw it as relevant. However, he added that “it may eventually catch up” if Trump’s tariffs start affecting Singapore’s economy. He noted that soon, “A car will eventually no longer be just a car, but a political object.”

While Tesla’s stock has plummeted over 50% in the past three months, Ark Investment Management CEO Cathie Wood said last week that she expects it to reach US$2,600 (S$3,473) in five years, nearly 10 times its current price. Investors also saw Tesla’s drop as an opportunity to buy more, with some new investors buying their first Tesla stock. /TISG 

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