Tesla suffers a $15 billion drop in brand value due to Musk controversies and declining consumer ratings (Austin Ramsey – Unsplash / X @elonmus)
The brand value of Tesla dropped by $15 billion in 2024, with Elon Musk being identified as the primary reason for this decline.
The company faced several issues recently, including the recall of 5 million vehicles, making it the most recalled automotive brand of the year, and the sale of $585 million in shares by a major investor due to concerns related to the CEO. Additionally, controversies surrounding the quality of the Cybertruck also impacted the brand’s reputation.
Analyses revealed that Tesla experienced a drop in its “consideration,” “reputation,” and “recommendation” scores across the United States, Europe, and Asia. In Europe, consumer purchase intent fell from 21% to 16% between 2024 and 2025, although consumer loyalty in the U.S. remained high.
However, the brand’s recommendation score dropped drastically from 8.2 to 4.3, suggesting Tesla is losing ground in the market.
Brand Finance CEO David Haigh warned that without exciting new products and control over controversies involving Musk, Tesla might struggle to maintain its sales and high prices. Furthermore, analysts like those at JPMorgan point out that the Trump administration could pose a risk to Tesla, particularly due to the threat of removing tax credits and subsidies for electric vehicles.
Source: Unilad | Photo: Austin Ramsey – Unsplash / X @elonmus | This content was created with the help of AI and reviewed by the editorial team
