The Ripples of Political Controversy: Evidence from the EV Market in Norway

Abstract

We study how political controversies surrounding one firm’s CEO activism affect competitive dynamics, focusing on the performance of the targeted firm’s untargeted competitors. Using a unique and comprehensive dataset on the Norwegian electric vehicle (EV) market, we analyze the sales performance of EV firms following a series of political controversies related to Elon Musk in January 2025. We find that Tesla’s sales fell over 40% relative to other firms in the five months post-controversy. Contrary to our prediction that European firms would benefit more than other untargeted firms due to their in-group status, results show that Japanese and Korean firms gained significantly on their European counterparts amidst Tesla’s drops. Evidence suggests this result was driven by a logic of expediency. Our results provide an implication that is both theoretically and empirically interesting: Whereas consumers’ first-order decision to shift away from Tesla was likely politically motivated, their second-order decision of which competitors to shift toward was likely not.

Speaker Biography

Prof. Koo is an assistant professor in the Management & Organization area at Johns Hopkins University, Carey Business School. His research investigates the relations between business, technology, and society, with a focus on the governance of platform ecosystems and the impact of technology on business and society. For example, he has studied how rural entrepreneurs navigate algorithmic change and how platform governance affects domestic workers. His research has been published in academic journals, including Management Science, Organization Science, Research Policy, and Strategic Management Journal, and it has been disseminated by leading media outlets such as FT, Forbes, and Channel News Asia. He serves on the editorial boards at Organization Science, Strategic Entrepreneurship Journal, and Strategic Management Journal. Before joining Hopkins, he was an assistant professor at INSEAD in Singapore. He received his Ph.D. at Stanford University, where his research was supported by the Stanford Technology Ventures Program, Stanford SEED, Accel Partners, Strategic Management Society, and Alibaba Group. Before his doctoral studies, he worked as a tech entrepreneur and received dual degrees in Environmental Engineering and Management from MIT.
He advises public companies, startups, and non-profit organizations on their tech strategy. He is based in Washington, D.C.