😎Elon Musk’s Role in One of the Biggest Brand Collapses

Elon Musk’s involvement in cutting federal spending has been described as one of the biggest cases of brand destruction in recent memory. According to U.S. marketing professor Scott Galloway, Musk alienated one of Tesla’s most valuable assets—its customer base—by backing a president whose supporters show little interest in electric vehicles or the broader clean energy movement.

Galloway pointed to a poll showing Tesla dropped from being the 8th most reputable brand in 2021 to 95th. “He’s alienated the wrong people,” Galloway said. “Three-quarters of Republicans would never consider buying an EV. So he’s cozying up to the people who aren’t interested in EVs.” He also cited sharp declines in Tesla sales across Europe last year: down 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland, and 33% in Portugal.

Musk’s Political Activity Drove Away European EV Buyers

In recent months, Musk has waded into European political debates, particularly on X, formerly Twitter. According to The Guardian, this interference alienated many European consumers—a major market for EVs. In April, China’s BYD even outsold Tesla in Europe for the first time, according to automotive market intelligence firm Jato Dynamics.

“This has arguably been one of the greatest brand destructions,” Galloway told co-host Kara Swisher. “Tesla was a great brand. He’s alienated his core demographic.”

The federal job and spending cuts tie back to Musk’s leadership of the Department of Government Efficiency (DOGE), under Trump’s second term, which began in January. Musk took the role after his super PAC donated $200 million to Trump’s successful 2024 campaign.

Since then, opinion polls show broad disapproval of Musk’s work for Trump. Some surveys reveal that most voters disapprove of how Musk and DOGE treated federal workers during significant job reductions. In April, Tesla reported a 71% drop in profits. On an earnings call, Musk told investors he would begin stepping back from DOGE in May. He said the job of putting the government’s “financial house in order is mostly done” and that his “time allocation to $DOGE

will drop significantly.”

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