Has Elon Killed the Tesla Brand?

Tesla is learning the hard way how quickly a CEO’s personal actions can damage a brand’s reputation. Elon Musk’s controversial political endorsements—like his reported support for Germany's far-right party, AfD—have triggered not just social media outrage but real-world consequences. We’re talking burned-down charging stations, vandalized dealerships, and a sharp drop in brand perception, as well as its share price. Musk’s political affiliations have particularly alienated Tesla’s liberal-leaning customer base, which helped make the company a powerhouse in the electric vehicle market.

Tesla’s brand reputation had already taken a measurable hit. In the Axios Harris Poll 100, Tesla fell from 8th place in 2021 to 63rd in 2024—a steep drop that reflects declining trust and ethics in the public eye. CNBC reports a $15B drop in its brand value in 2024, and this is before everything that's happened in 2025. While Tesla enjoyed strong customer loyalty, with nearly 70% of Tesla-owning households buying another Tesla in 2024, the brand’s broader appeal now appears to be fading. Increased competition from other EV makers and quality issues have only compounded the problem.

From a brand equity point of view, the actions of a company's leader has impacted brands before - this isn’t the first time a brand has suffered. In 2017, Uber faced significant backlash due to CEO Travis Kalanick’s leadership style and reports of a toxic work culture. Allegations of sexual harassment and discrimination within the company led to public outrage and a #DeleteUber campaign that saw many users abandon the platform. Kalanick’s resignation and Uber’s efforts to improve its corporate culture were necessary steps toward rebuilding trust with both employees and customers.

Another striking example is WeWork and Adam Neumann. Neumann cultivated a larger-than-life image as a visionary entrepreneur, but his erratic behavior and questionable financial decisions—including excessive personal spending and self-dealing—ultimately led to WeWork’s failed IPO in 2019. Investors quickly lost confidence when it became clear that WeWork’s rapid expansion was fueled more by Neumann’s charisma than sound business fundamentals. After Neumann’s exit, WeWork struggled to regain its footing, highlighting how much of the company’s value had been tied to the cult of personality around its leader.

The challenge for Tesla is that Musk is the brand. His personal identity has been so closely tied to Tesla’s success that it’s hard for customers to separate the two. But if Tesla wants to recover, it will need to start untangling itself from Musk’s polarizing image.

First, Tesla will need to focus on its core product—improving vehicle quality and customer service. Second, it needs to rebuild trust through consistent, values-driven messaging that appeals to a wider audience. Finally, creating some distance between Musk’s personal brand and Tesla’s corporate identity might help the company regain lost ground.

The lesson for other brands is clear: in today’s hyperconnected world, a CEO’s personal views are no longer separate from the company’s public image. Consumers are increasingly values-driven, and when a brand’s leadership clashes with those values, the fallout can be swift and severe. The path to recovery is possible—but it requires a strategic, authentic response and a willingness to listen to the market.