Can a damaged exhaust tailpipe affect the vehicle’s overall performance or fuel economy?

A damaged exhaust tailpipe can affect a vehicle's overall performance and fuel economy in several ways. 
The exhaust system plays a crucial role in removing gases produced by the engine. A damaged tailpipe can cause exhaust gases to back up into the engine or disrupt the proper flow of exhaust, which can lead to poor engine performance. This can result in:
Decreased horsepower: A restricted or obstructed exhaust flow can prevent the engine from operating at optimal levels, reducing power output.
Engine misfires: In some cases, if the exhaust system is not venting properly, it may lead to poor combustion, causing misfires and reduced engine efficiency.
Increased engine stress: The engine has to work harder to push exhaust gases through a damaged or obstructed tailpipe, potentially causing more wear and tear on engine components.
A damaged exhaust tailpipe can impact the vehicle’s fuel efficiency in several ways:
Increased fuel consumption: If the exhaust is not venting properly, the engine might compensate by burning more fuel to maintain power. This inefficiency leads to higher fuel consumption.
Reduced exhaust flow: A tailpipe that is damaged, clogged, or leaking can prevent the exhaust system from expelling gases effectively. This causes the engine to work harder, leading to inefficient fuel usage and lower miles per gallon (MPG).
Oxygen sensor malfunction: Many vehicles use oxygen sensors to monitor the air-to-fuel ratio and ensure optimal combustion. A damaged exhaust system or tailpipe can cause the oxygen sensor to provide incorrect readings, leading to improper fuel mixture adjustments, which can reduce fuel efficiency.
A damaged tailpipe can result in higher emissions because the exhaust system might not properly filter or redirect harmful gases (like carbon monoxide, nitrogen oxides, and hydrocarbons) through the catalytic converter.
This not only affects the environment but may also cause the vehicle to fail emissions tests, which can be problematic, especially in regions with strict environmental regulations.
A damaged exhaust tailpipe can lead to an increase in noise from the vehicle, which may indicate that gases are not being properly vented or are escaping through holes or cracks. While this does not directly affect fuel economy, the noise could be a sign of other exhaust system problems, like leaks, that might impact performance.
A compromised exhaust system, including a damaged tailpipe, may also affect the catalytic converter. If exhaust gases cannot exit properly, or if the flow is inconsistent, the catalytic converter may become overheated, leading to damage. A malfunctioning catalytic converter can result in poor engine performance and higher emissions, and can be costly to replace.