Tesla’s Brand Value Plummets Amidst Musk’s Controversies and Aging Lineup
Tesla’s brand value experienced a significant 26% drop in 2024, marking its second consecutive year of decline. This substantial fall, revealed by Brand Finance, a leading research and consulting firm, brings Tesla’s brand valuation down to an estimated $43 billion. This decline is attributed to a combination of factors, including an aging product lineup, increased competition, and the controversial public persona of CEO Elon Musk. The contrast between Tesla’s soaring stock price and plummeting brand value highlights a widening gap between Wall Street perception and consumer sentiment.
Key Takeaways: Tesla’s Brand Value Takes a Hit
- Dramatic Brand Value Drop: Tesla’s brand value plummeted by 26% in 2024, reaching $43 billion – a significant decrease from $58.3 billion at the start of the year and $66.2 billion in 2023.
- Musk’s Impact: Elon Musk’s controversial public statements and political activities are weighing heavily on consumer perception, significantly impacting Tesla’s brand appeal.
- Aging Product Lineup: A lack of new, exciting vehicle models is contributing to waning consumer interest and impacting Tesla’s market share.
- Increased Competition: Rivals like Toyota and Mercedes are outperforming Tesla, particularly in terms of brand consideration and recommendation, especially outside of the U.S. market.
- Divergence from Stock Price: While Tesla’s stock price soared in 2024, consumer sentiment and brand value tell a vastly different story, painting a less optimistic picture for the future.
Tesla’s Brand Value in Decline: A Deeper Dive
Brand Finance’s assessment, based on extensive consumer surveys and financial analysis, provides a comprehensive picture of Tesla’s current standing. The firm’s research involved analyzing responses from approximately 175,000 survey respondents globally, including 16,000 on Tesla specifically. Their findings indicate a significant deterioration across key brand metrics, including consideration, reputation, and recommendation.
Declining Consumer Sentiment
Tesla experienced notable declines in consideration, reputation, and recommendation scores across its major markets: the U.S., Europe, and Asia. In Europe, for instance, the consideration score dropped from 21% to 16% between 2024 and 2025. Competitors like Mercedes and BYD are outshining Tesla in these key areas, especially outside the United States. Even in the U.S., where Tesla maintains a high customer loyalty score (90%), its recommendation score plummeted from 8.2 to 4.3, highlighting a significant erosion in positive word-of-mouth.
The Musk Factor: A Double-Edged Sword
Brand Finance CEO David Haigh points to Elon Musk’s public persona and political activities as a significant factor contributing to Tesla’s brand decline. “There are people who think he’s wonderful, but many that don’t,” Haigh stated. Musk’s political engagements, including his support for Donald Trump and his reported interactions with Vladimir Putin, have fueled negative perceptions among a segment of the population. His recent endorsement of Germany’s far-right AfD party and his public pronouncements only compounded the issue.
Haigh emphasized that while some consumers may prioritize the product regardless of Musk’s actions, a substantial portion are influenced by his image. “There’ll be a small number that say, I really don’t care what they do. I just want their product… There are other gradations of people who care, right through to those who say, I’m not touching that product on principle,” he explained.
The Impact on Market Share
Tesla’s declining brand strength is reflected in its dwindling market share. While global demand for electric vehicles continues to rise, Tesla’s deliveries dropped by about 1% in 2024, reaching 1.79 million. In the U.S., its EV market share fell to 49% from 55% the previous year, as reported by Cox Automotive. This downturn demonstrates a significant loss of momentum for a company once considered the undisputed leader in the EV market.
Beyond Tesla: The Impact on Other Musk-Led Brands
Brand Finance’s analysis extended beyond Tesla, evaluating other enterprises under Elon Musk’s leadership. The findings revealed a broadly negative trend across the board, reflecting the potential impact of the CEO’s controversial image.
X (formerly Twitter): A Drastic Fall
The rebranding of Twitter to X led to a significant decline in the platform’s brand value. The brand value of X dropped by 26%, from $673 million to $498 million. The name change, coupled with Musk’s management decisions affecting both users and advertisers, contributed to this considerable loss. “Twitter was very well known, very well-liked and attracted a lot of advertising… Overnight, when he changed it to X, according to our data, that reduced the value by about 75%,” Haigh highlighted. The contrast with Twitter’s 2022 brand value of $5.7 billion starkly illustrates the magnitude of this decline.
SpaceX and Starlink: Relative Success
Unlike Tesla and X, SpaceX and its Starlink satellite internet service showed more positive results. SpaceX’s brand value increased by 11% to $3.8 billion, while Starlink’s brand value is estimated at $2.4 billion. The high recognition of SpaceX in the U.S. (45% familiarity among survey respondents) suggests that reputation and brand value are not uniformly impacted by association with Musk across all his ventures.
Conclusion: The Future of Tesla and the Musk Effect
Tesla’s declining brand value serves as a cautionary tale for companies heavily reliant on the image of their CEO. While revolutionary technology and a strong initial brand are crucial for success in today’s market, maintaining a positive public perception through responsible leadership and calculated public relations strategies is equally vital.
For Tesla, the road to recovery requires a two-pronged approach: reinvigorating its product lineup with innovative models and actively mitigating the negative impact of Elon Musk’s actions and statements on consumer perception. Unless these changes occur, Tesla risks losing its position as an industry leader, potentially facing a prolonged period of diminishing brand strength and market share. The success or failure of Tesla’s future will be a testament to the power of brand image management and the long-term effects of leadership decisions on a company’s overall value and trajectory.