Tesla is currently facing a major brand crisis, driven by CEO Elon Musk’s controversial political involvement, particularly his role in the Trump administration's DOGE initiative. According to Dan Ives of Wedbush Securities, this moment is a "code red" for the company, and Musk needs to distance himself from politics and refocus on leading Tesla.
The company’s brand value has dropped 26% to $43 billion in 2025, allowing rivals like Mercedes-Benz and Hyundai to surpass it in global rankings. Tesla’s stock has also fallen 43% since the beginning of the year, compounded by weak first-quarter deliveries and growing protests, particularly in Europe and Asia.
As Tesla prepares for its earnings report, all eyes are on Musk’s next moves. Analysts believe Tesla’s future hinges on his full-time return as CEO, and how the company handles its political and public perception issues will be key in the weeks ahead.
