TY  - RPRT
        AU  - Buggle, Johannes
AU  - Butschek, Sebastian
AU  - Tenschert, Elian
        TI  - Political Identity and Consumer Behaviour: Musk and Tesla in Germany
        PY  - 2026/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 18458
        UR  - https://www.iza.org/index.php/publications/dp18458
        AB  - 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.
        KW  - consumer identity
KW  - political polarization
KW  - Elon Musk
        ER  -