The Elon Musk Show is the gift that keeps on giving for pundits, including yours truly. This week, TheWall Street Journalposited that Musk's political opinions are turning off Democrat buyers-one reason the company's sales declined in the first quarter of this year.

Ahh. So now we buy cars based on political beliefs? That sounds nutty, but there's some truth to it. Over my three decades testing new cars I came up with my own list of buyer priorities to help me predict a car's sales success. Mind you, my formula is far from scientific; rather, it's based on observations collected over a career rubbing shoulders with engineers, designers, product planners, and analysts across the global automotive industry.

I believe that the number one aspect, for most car buyers and not us nut job enthusiasts, is a car's design. Then comes the infotainment system-particularly the ease of pairing cell phones-and then the brand and what it represents. Some will quibble that I'm missing rational considerations like number of seats, price, fuel economy, etcetera, and you'd be right. Hang with me though.

Our cars are like clothes: They say something about us, especially for those lucky enough to be able to afford more than a basic tool to get to work. The first mass-selling Toyota Prius, the egg-looking thing from the aughts, outsold every other hybrid largely because its distinctive (if unattractive) shape sent a clear message about the owner. The same goes for Subarus-I don't know what the brand's message is, exactly, but it sells a lot of cars.

We consumers are all susceptible to this image shaping, me included. I searched for and paid a premium for a silver 1990 Miata because I didn't want to be the fifty-something dude pining for attention with a red sports car. Silly, right? Of course, if a car is junk, the right design won't save it. People are rational but not perfectly so, which is what gave rise to behavioral economics. Humans are complicated.

Now back to Musk. Tesla cars hit three powerful points: They send the desired message, they're generally good cars, and for a while they had the coveted shiny penny aspect. We love the new and the novel.

Musk may be turning off buyers with the provocative and controversial statements he makes on X (formerly known as Twitter) and in interviews, but the Tesla model lineup is also getting a little stale. The biggest sellers, the Model 3 and the Model Y, debuted in 2016 and 2019, respectively. Some car models, like the Toyota 4Runner, survive for years with minimal changes, but most require significant upgrades after the fourth or fifth year. Tesla is also facing more competition than it did three years ago, even while demand for EVs is cooling. And the company relinquished a competitive advantage when it recently began allowing EVs from other automakers to use Tesla's proprietary charging network.

Musk's politics surely have an effect, but I think those more conventional factors play a larger role. So, what's his response? You should read the transcript of the Tesla earnings call from earlier this week. Musk and Tesla executives said that the company is accelerating the rollout of new models, including cheaper cars. They'll arrive in about a year. The cars, Musk stressed, are the sideshow. "The way to think of Tesla," he said, "is almost entirely in terms of solving autonomy…"

Musk said that AI engines are quickly learning from the Teslas already on our roads and operating with existing driver-aid systems. He mentioned the advantage Tesla had in its development of AI because the constraints of on-car computing meant that the Tesla software is uncommonly efficient. The company plans to show a robotaxi on August 8. Musk says that Tesla will operate a fleet of taxis and Tesla owners will be able to rent out their cars like many do with their homes on Airbnb. We've heard this before, and the promised delivery dates have come and gone. The difference-as it seems to this computer idiot-lies in how quickly the AI systems are learning and evolving the autonomous systems.

I'm in no position to judge the veracity of Musk's claims. I think we're all now used to technology hucksterism, a promised future state that's good for the stock price but ultimately never arrives. Remember when they said the internet would allow people to share information and make us all closer? Right. Perhaps autonomy is a convenient redirect away from the aging hardware. That said, the Model 3, which has been thoughtfully updated, is now available with a $299 per month lease. While the car's price cuts over time have certainly penalized the resale price of existing Model 3s, likely angering many existing owners and turning them off from buying another, the current Model 3 is a solid deal.

With Musk, we could be witnessing what's often called the "Founders Curse," where the vision and energy needed to launch a new company are not what's needed to ensure its continued prosperity. There are ample examples to study including General Motors, which took off thanks to William Durant but then later thrived after his ouster. The New York Times recently ran this terrific summary. Food for thought.

Whatever you think of Musk, at least he's not boring. He also sounded very excited about the humanoid robot, called Optimus, which the company plans to sell in the next 12 months. After reading the transcript my first thought was, "Maybe we should slow down a little here." I do, however, have enormous respect for what Musk has accomplished. He is undeniably a brilliant guy.

The auto industry is never dull. Before I wish you a fantastic weekend, I highly encourage you to watch Jason Cammisa's brilliant history of Bugatti's short-lived return, back in the 1990s, with the EB110 supercar. This weekend, I'll be at the Air|Water show in Los Angeles to commentate during the Broad Arrow Porsche auction. We're broadcasting the action live on the Hagerty Samsung TV Plus network, channel 1194. If you don't have a Samsung TV, you can watch for free here. And if you'd like to support all the free automotive content Hagerty provides, please join the Hagerty Drivers Club.

Get out and drive this weekend!

Larry

P.S.: Your feedback is very welcome. Comment below!

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