Elon Musk Responds To Survey On Split Demand For Tesla EVs In US: 'Affordability Is The Limiting Factor'

Tesla Inc TSLA CEO Elon Musk on Tuesday noted that it is not a lack of interest but affordability limiting people in the United States from buying Tesla vehicles.

What Happened: “Affordability is the limiting factor,” Musk said. The CEO was responding to an X.com user who remarked that half of America wants a Tesla.

The user cited the Google search analysis, made by the online car marketplace Autotrader, and said that 25 U.S. states want to buy a Tesla while 21 states want to buy a Jeep. Japanese carmaker Toyota continues to be popular in Alaska, Vermont and West Virginia as per the analysis which used data from January to December 2022.

As per the map published by Autotrader, Tesla appears to be more popular in the coastal states where the population is higher while Jeep is more popular in the central states. However, Tesla’s upcoming Cybertruck may win over the market for Jeep in these states once deliveries commence, the user said.

Why It Matters: Tesla is not only the most popular brand in America but also in 38 other countries worldwide. As per Autotrader’s analysis, it is also the most searched vehicle to buy in Canada, France, Spain, Germany, Australia, UAE and Scandinavian nations.

In the second-quarter earnings call this month, Musk said that Tesla may further cut prices in the months ahead depending on larger market conditions and interest rates. Musk noted that the affordability of anything bought with debt decreases as interest rates rise. Up until recently, it was the sharpest interest rate rise in history and Tesla had to reduce the price of their cars because the interest payments increase the price of the car, Musk said.

Photo Courtesy: Shutterstock.com

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read More: 2 Legacy Auto Giants Behind Most Vehicle Recalls So Far This Year — Tesla Outside Top 10