Elon Musk’s recent political engagements have been labeled as one of the most damaging episodes of brand value erosion in recent history. According to renowned marketing professor Scott Galloway, Musk has alienated a significant portion of Tesla’s customer base by aligning himself with political figures whose followers have shown minimal interest in electric vehicles (EVs) or sustainable transportation.
Back in 2021, Tesla was ranked the 8th most reputable brand in the U.S., but recent polling now places it at 95th—a steep fall that Galloway attributes to Musk’s political associations. “He’s turned off the people who actually buy EVs,” Galloway remarked, pointing out that a large majority of Republican voters have little interest in owning electric vehicles.
Tesla’s sales figures in Europe have also taken a hit. The company experienced major year-over-year declines in countries like France (-59%), Sweden (-81%), the Netherlands (-74%), Denmark (-66%), Switzerland (-50%), and Portugal (-33%). Musk’s vocal involvement in European political debates through his social platform X is believed to have contributed to this decline, turning off key international markets.
Adding to the pressure, Chinese EV manufacturer BYD surpassed Tesla in European sales for the first time in April, according to data from Jato Dynamics.
Galloway didn't hold back, calling the situation “one of the greatest brand destructions in history,” and emphasizing that Musk has effectively alienated Tesla’s core consumer demographic.
Musk’s recent leadership role in the Department of Government Efficiency (DOGE), established during Trump’s second term, has also stirred controversy. After his super PAC donated $200 million to Trump’s campaign, Musk took charge of DOGE and led aggressive federal spending cuts. Public sentiment has since soured, with many Americans disapproving of how DOGE handled job reductions and its broader impact on federal workers.
In the midst of these developments, Tesla reported a dramatic 71% drop in profits. On a recent earnings call, Musk acknowledged his intent to scale back his involvement in DOGE, claiming that the department’s primary goals had been achieved and that he would be refocusing his time elsewhere.
As Tesla navigates shifting public opinion and global competition, the long-term effects of Musk’s political ventures on the company’s brand remain to be fully seen.
#MarketRebound #Dogecoin #DOGE原型柴犬KABOSU去世
