Elon Musk’s ‘antagonism’ has led to a significant drop in customer ratings.
Tesla’s brand value has taken a $15 billion hit, and it seems Elon Musk is at the center of it all, according to recent analysis.
The electric vehicle maker and Musk have been in the news for all the wrong reasons lately.
Last year, around 5 million Teslas were recalled globally, making it the most recalled car brand of 2024.
Additionally, a major investor offloaded $585 million in shares, again pointing the finger at the tech mogul.
Online, people have been criticizing the controversial Cybertruck’s build quality.
Brand Finance, a research and consulting firm, revealed that Tesla’s brand value has dropped for the second year in a row in 2024. It’s now estimated at around $43 billion, a decline from $58.3 billion at the start of this year and $66.2 billion at the beginning of 2023, according to their annual ranking.
On the bright side, Tesla’s stock price surged by 63% last year, reaching an all-time high in December after Donald Trump’s election victory in November.
However, Brand Finance CEO David Haigh pointed out that CEO Elon Musk’s controversial behavior, including accusations of making a ‘Nazi salute’ at Trump’s inauguration, has its drawbacks. Haigh noted, “Some people think he’s great, but there are plenty who don’t. If you’re in the market for an electric vehicle, his image is likely to influence your decision on whether to buy one of his cars, but that’s just one of many things to consider.”
Brand Finance looked at responses from around 175,000 people globally, with 16,000 sharing their thoughts specifically on Tesla.
The findings showed that Tesla’s scores in important areas like ‘consideration,’ ‘reputation,’ and ‘recommendation’ took a hit in the US, Europe, and Asia.
In Europe, the ‘consideration’ score—essentially how many folks are thinking about buying from Tesla—fell from 21% to 16% on average between 2024 and 2025.
Not surprisingly, Tesla still boasts a solid loyalty score of 90% in the US.
This means that those who already own a Tesla are likely to stick with it for the next year, as reported by CNBC.
However, its recommendation score in the US plummeted from 8.2 out of 10 to just 4.3.
Haigh pointed out that Tesla’s declining scores indicate the company’s appeal might be fading. He warned that this could lead to Tesla struggling to sell as many products or maintain the high prices they once did.
He added, “If Tesla doesn’t roll out a bunch of new products that really grab consumers’ attention, and if they can’t ease some of the backlash against their CEO, they might be seen as past their prime and start to decline.”
On another note, analysts seem to think that Trump’s presidency could be beneficial for Tesla, but not so much for electric vehicles overall.
In early January, JPMorgan projected that around 40% of Tesla’s profits could be at risk once Trump takes office, according to Investor’s Business Daily.
This is based on Trump’s plans to cut EV tax credits and subsidies.
“Tesla doesn’t seem to be on a path to lead the global auto market during this shift to electrification, which we see as just the beginning for its current valuation,” wrote JPMorgan analyst Ryan Brinkman.