Why Government Failures and Musk’s Extremism Are Stalling Progress

The dream of an all-electric future is fast becoming a nightmare. Despite years of promises, incentives, and PR spin, nearly two-thirds (63%) of UK motorists still have no plans to buy an EV. This isn’t just consumer hesitancy - it’s a damning indictment of government failure and the growing toxicity surrounding the sector, fuelled in part by Elon Musk’s polarising political stance.

Government Betrayal: The Tax That’s Killing the EV Boom

Let’s start with the government. At a time when we should be accelerating EV adoption, policymakers are doing the opposite. From 1^st April, new EVs priced over £40,000 will be hit with a five-year ‘expensive car tax’ of £425 per year, alongside a newly introduced road tax of £195. This absurd move punishes those willing to make the switch and discourages future buyers.

Instead of investing in robust infrastructure and consumer incentives, the UK government has opted for a money-grabbing tax regime that undermines the entire EV push. The result? Stagnation - 61% say EVs are simply too expensive. With policies like these, who can blame them?

The Musk Effect: How One Billionaire’s Extremism Is Poisoning the Market

No discussion of the EV market's challenges would be complete without addressing the elephant in the room, Elon Musk. Tesla once symbolised innovation, but now it’s become a political battleground. Musk’s public embrace of far-right ideologies, conspiracy theories, and hostility toward progressive movements maybe having ripple effects beyond Tesla. His aggressive political stance and erratic decision-making have cast a shadow over the entire EV industry.

Our agency's research indicates that Musk's increasingly divisive public persona has created what we term "category contamination," where negative associations with the industry's most visible figure spill over to affect perception of all EV brands. This effect is particularly pronounced among politically moderate and left-leaning consumers - demographics that have traditionally been early adopters of environmental technologies.

In dipstick research conducted across the UK in January 2025, we found:

·       47% of centrist and left leaning voters expressed hesitation about purchasing any EV, citing concerns about "indirectly supporting" Musk's political positions

·       34% of moderate voters reported that news about Musk's politics had negatively affected their perception of EVs generally

While correlation isn't causation, the timing of Musk's political evolution and the stalling of EV adoption rates cannot be dismissed as coincidental. The industry faces the unprecedented challenge of a category pioneer whose personal brand has become toxic to significant segments of its potential customer base.

Musk’s controversial positions aren’t just hurting Tesla’s brand - they’re turning off consumers who once championed EVs as a symbol of change. In a sector already facing headwinds, Musk’s personal politics are creating an unnecessary barrier to growth.

The Used EV Market: A Missed Opportunity

Even if consumers want an EV, they’re unlikely to consider a used one. Only 8% of UK motorists are looking at second-hand EVs, thanks to fears over battery degradation and a lack of transparency in the resale market. AXA UK’s call for standardised battery health certificates is a step in the right direction, but it’s just one piece of a much larger puzzle.

The Way Forward: Aggressive Action, Not Lip Service

If the UK government is serious about an EV future, it needs to stop punishing early adopters and start addressing the real issues:

• Abolish the EV tax penalty - immediately.
• Massively expand charging infrastructure - maybe a charging point in every postcode initiative would be a good start. 
• Mandate battery health certificates to stabilise the used EV market and drive confidence.
• Call out Musk’s influence and ensure the EV sector isn’t defined by one man’s erratic politics.

Consumers aren’t rejecting EVs because they don’t want them. They’re rejecting them because government policies make ownership a headache, and industry leadership is tainted by controversy. It’s time to cut through the noise and get back to what matters - making EVs accessible, affordable, and apolitical. The future of mobility depends on it, not just manufacturer discounting.