Zoomers Think Teslas Aren't "Cool" Anymore, Survey Finds

"I think that [Musk's] latest antics have really cost the company. It's caused problems that never needed to exist."

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A new survey of interns at investment bank Morgan Stanley has found that the "Tesla 'cool factor' is cooling" among Gen Zers in the US.

According to the report, the Elon Musk-led company was the most desirable brand for only 11 percent of Morgan Stanley interns, compared to 14 percent last year, and 19 percent in 2022. German automakers Mercedes and BMW took the desirability crown in the latest survey.

While interns at an investment bank aren't exactly going to represent every person born between the years 1997 and 2012, it's indicative of a decline in interest among affluent or upwardly mobile young people — Tesla's core demographic, historically speaking.

At the center of the crisis is Musk himself, who's contributed greatly to the decline of the brand's reputation by veering to the far right and endorsing former president Donald Trump, a decision that's actively hurting sales in other parts of the world.

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Tesla is already struggling with falling sales, posting the second consecutive quarter decline during its earnings call last month.

Compounding the automaker's woes is also a huge influx of cheaper alternatives from abroad, particularly from China.

Morgan Stanley's intern survey suggests that young people are paying attention, especially when it comes to Musk's abysmal public behavior and tendency to spread disinformation.

"I'm assuming that they're a little more conscious of what's happening, and they are on social media more often," director of insights at vehicle inventory company Edmunds Ivan Drury told Business Insider. "I think that [Musk's] latest antics have really cost the company. It's caused problems that never needed to exist."

Tesla has also doubled down on its plagued driver assistance program at the cost of the development of a cheaper, next-generation vehicle. Musk has promised to unveil a "robotaxi" before the end of the year, but whether an autonomous ride-hailing service will be able to turn things around for Tesla remains to be seen.

"It only will work for people who don't own a car and have no intentions of owning one," Drury told BI.

It's not just Tesla's desirability. Interest in battery electric vehicles decreased for the second year in a row, according to the intern survey, suggesting ongoing concerns over battery range and availability of chargers, particularly among young people who can't afford home ownership.

Even older demographics are looking to jump ship. According to a recent McKinsey survey, a whopping 46 percent of US EV owners said they were considering going back to a gas-powered car.

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