Tesla’s brand value has taken a dramatic hit, with a $15 billion drop attributed to controversies surrounding Elon Musk. Analysts from Brand Finance report that Tesla’s value fell for the second consecutive year, from $58.3 billion in early 2024 to $43 billion now. Customer loyalty remains high among existing owners, but recommendation scores have significantly declined in key markets like the U.S., Europe, and Asia.
The backlash stems from multiple factors, including high-profile vehicle recalls and criticism of the Cybertruck’s build quality. Musk’s behavior at public events has also played a role, with accusations of a “Nazi gesture” during Trump’s inauguration stirring additional controversy. Major investors have started selling off shares, including one recent $585 million sale, citing Musk’s conduct as a driving factor.
Brand Finance CEO David Haigh warned that Musk’s divisive persona is damaging Tesla’s reputation, potentially weakening its ability to sell at premium prices. He added that unless Tesla innovates with new, exciting products and addresses the damage caused by Musk’s controversies, the company risks being viewed as past its prime.
Tesla’s challenges are compounded by the incoming Trump administration’s proposals to cut electric vehicle tax credits, which could jeopardize 40% of the company’s profits, according to JPMorgan analysts. Despite these hurdles, Tesla still enjoys significant brand loyalty, though its future growth may depend on distancing itself from ongoing controversies.
