%0 Report
        %A Buggle, Johannes
%A Butschek, Sebastian
%A Tenschert, Elian
        %T Political Identity and Consumer Behaviour: Musk and Tesla in Germany
        %D 2026
        %8 2026 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 18458
        %U https://www.iza.org/index.php/publications/dp18458
        %X 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.
        %K consumer identity
%K political polarization
%K Elon Musk