As Elon Musk’s political affiliations begin to weigh on Tesla’s brand perception, the tech CEO is turning to a unique strategy: combining EV charging stations with movie theaters and restaurants.
New Concept: Dine and Watch While You Charge
According to The New York Times on Friday, Musk is building a multi-purpose facility on Santa Monica Boulevard in Los Angeles that integrates Tesla Superchargers with an on-site restaurant and a dual-screen movie theater.
The venture aims to offer EV owners a new cultural experience, allowing them to enjoy a meal or short film during the longer charging times typically required for EVs.
Building permit filings describe a 21,800-square-foot (2,023-square-meter) complex featuring two screens that will show 30-minute films.
Musk first hinted at the project on social media in August 2023, calling it a “Tesla retro futuristic diner.”
Construction began in September, and while finishing touches are being put on, an official opening date has not yet been announced.
Brand Loyalty Wanes as Used Tesla Listings Surge
This innovative approach comes at a critical time for Tesla. According to Reuters, citing data from Edmunds, Tesla vehicles made up 1.4% of all used car listings as of March 15—a sharp rise from 0.4% in March 2023. This marks Edmunds’ highest-ever monthly rate for used Teslas.
The proportion of Tesla vehicles in the used car market has steadily climbed from 1.2% last month.
In contrast, consumer interest in purchasing a Tesla has dropped to 1.8%, down from 3.3% in November. Research firm Cox Automotive estimates that Tesla’s sales fell 10% year-over-year last month.
Musk’s Political Stance Damages Tesla’s Brand Value
Jessica Caldwell, head of insights at Edmunds, said that Musk’s increased political involvement and Tesla’s depreciation distanced long-term owners from the brand. This raises real concerns about brand loyalty.
The New York Times also noted that Musk’s role during the Trump administration—overseeing agency downsizing and mass layoffs—has contributed to a negative perception of Tesla among certain groups.
Caroline Stein, a restaurant owner approached by Tesla to operate the facility, told The New York Times she ultimately sold her Tesla due to discomfort with Musk’s political activity.
She initially declined the restaurant offer due to concerns about profitability and liquor license restrictions but later cited Musk’s politics as another contributing factor.
Caldwell added that the weakening of Tesla’s brand opens the door for competitors. With competitive pricing, innovation, and less controversy, rivals can attract current Tesla owners and new EV buyers more easily.
