Elon Musk and the Fall of Tesla’s Brand Reputation

According to marketing professor Scott Galloway, Elon Musk’s political alignment and controversial leadership have led to one of the most significant brand destructions in recent history. Once ranked #8 in brand reputation, Tesla has plummeted to 95th, with Musk’s polarizing presence alienating key customer bases — especially in Europe, where EV adoption was strongest.

Key points:

• Musk’s support for Trump and leadership of the Department of Government Efficiency (DOGE) under Trump’s second term sparked public backlash.

• A $200M super PAC donation secured Musk’s DOGE position, where aggressive federal spending cuts and job losses were implemented.

• Tesla’s reputation took a hit, particularly in Europe:

• France: -59% sales

• Sweden: -81%

• Netherlands: -74%

• Denmark: -66%

• Switzerland: -50%

• Portugal: -33%

• BYD overtook Tesla in Europe for the first time, signaling a major market shift.

• Tesla profits plunged 71%, prompting Musk to step back from DOGE leadership in May.

Galloway warns: “He’s alienated the wrong people. Tesla’s core demographic is walking away.”

Takeaway:

Brand loyalty is fragile. When leadership becomes political, consumer trust is often the first casualty.