Tesla Lost $15 Billion In Brand Value In 2024, Report Says: Did Elon Musk's Political Push Hurt EV Giant?

Core Insights - Tesla's stock experienced a surge following Donald Trump's victory in the 2024 presidential election, contributing to Elon Musk's net worth exceeding $400 billion. However, Musk's political affiliations may negatively impact Tesla's brand value [1][2]. Brand Value Decline - Tesla's brand value dropped to $43 billion in 2025, a 26% decrease from $58.27 billion in 2024, resulting in a fall from 18th to 36th place in the global brand rankings [2][3]. - This marks the second consecutive year of declining brand value for Tesla, attributed to a lack of new vehicle releases and Musk's controversial public persona [3]. Consumer Sentiment - Consumer perception of Tesla has deteriorated, with significant declines in reputation, recommendation, and consideration scores compared to the previous year [4]. - A survey involving over 16,000 participants indicated a notable drop in Tesla's rankings, particularly in Europe, although the U.S. still reported a high loyalty score of 90% among Tesla owners [5][6]. Recommendation and Loyalty Scores - Despite a high loyalty score, Tesla's recommendation score plummeted from 8.2 to 4.3 out of 10 in the U.S., suggesting that current owners are less likely to recommend Tesla vehicles to potential buyers [6]. - Brand Finance's CEO indicated that without new product releases to attract customers, Tesla may struggle to maintain sales and pricing levels [6]. Competitive Landscape - Other companies associated with Musk also saw brand value changes; X (formerly Twitter) experienced a 26% decline, while SpaceX's brand value increased by 11% to $3.8 billion [7][8]. - In the automotive sector, Tesla ranked behind Toyota, Mercedes-Benz, and Hyundai in the annual brand rankings [11]. Customer Reactions - Some Tesla customers expressed dissatisfaction with Musk's political stance, leading to initiatives like bumper stickers criticizing his behavior [11]. - A survey in the Netherlands revealed that approximately one-third of Tesla owners were contemplating selling their vehicles, with Musk's actions being a significant factor in their reconsideration of brand loyalty [12][13].