- The value of Tesla’s brand dropped in 2024 for a second straight year, according to research and consulting firm Brand Finance.
- Tesla’s brand value now stands at around $43 billion, down from $58.3 billion at the beginning of 2024, and behind Toyota at $64.7 billion, the firm said.
- Regarding Elon Musk’s influence, Brand Finance CEO David Haigh said, “There are people who think he’s wonderful, but many that don’t.”
Tesla’s brand value has declined for the second consecutive year in 2024, shedding 15 billion,according to a report by research and consulting firm Brand Finance.
The decline has been attributed to several factors, including Tesla’s aging vehicle lineup and the polarizing public persona of CEO Elon Musk. Brand Finance CEO David Haigh noted that Musk’s influence is a double-edged sword: “There are people who think he’s wonderful, but many that don’t.”
Brand Finance, a London-based firm, evaluates brand value by analyzing financial data, consumer surveys, and market performance. This year, the firm surveyed approximately 175,000 respondents globally, including 16,000 who shared their views on Tesla. The findings reveal a stark contrast between Wall Street’s bullish outlook on Tesla and the broader public’s declining perception of the brand.
Despite Tesla’s stock surging 63% in 2023, driven in part by Musk’s political influence and donations to Republican candidates, consumer sentiment has waned. Key metrics such as “consideration,” “reputation,” and “recommendation” scores have declined across major markets, including the U.S., Europe, and Asia.
In Europe, Tesla’s consideration score—measuring whether consumers would buy from the brand—dropped from 21% to 16% between 2024 and 2025. Competitors like Mercedes and BYD outperformed Tesla in consideration and recommendation scores outside the U.S. While Tesla maintained a high loyalty score of 90% among U.S. customers, its recommendation score in the country plummeted from 8.2 out of 10 to 4.3.
Challenges and Risks
Haigh warned that Tesla’s declining brand strength could have serious implications: “Tesla’s pulling power is weakening. There’s a risk that Tesla won’t be able to sell as many products or command the same high prices as before.”
The data supports this concern. Tesla’s global deliveries fell by 1% in 2024 to 1.79 million vehicles, despite rising global demand for EVs. In the U.S., Tesla’s market share in the EV sector dropped to 49% from 55% the previous year, according to Cox Automotive.
Brand Finance’s brand strength index score for Tesla also declined, falling from just over 80 to under 65. This score reflects how well a brand performs against competitors on intangible measures like reputation and consumer loyalty.
Musk’s Influence and Political Controversies
Elon Musk’s high-profile political activities and controversial statements have further complicated Tesla’s brand image. Musk has engaged with global leaders such as Russia’s Vladimir Putin, Italy’s Giorgia Meloni, Brazil’s Jair Bolsonaro, and Argentina’s Javier Milei. He has also endorsed Germany’s far-right Alternative for Germany (AfD) party and advocated for the release of controversial figures like Tommy Robinson in the U.K.
During a public appearance following Donald Trump’s inauguration, Musk used a gesture described by historian Ruth Ben-Ghiat as resembling a “Nazi salute.” These actions have alienated some consumers, with Haigh noting, “There are gradations of people who care, right through to those who say, I’m not touching that product on principle.”
Broader Impact on Musk’s Ventures
Brand Finance also evaluated other companies led by Musk, including X (formerly Twitter), SpaceX, and Starlink. The rebranding of Twitter to X in 2023 led to a 75% drop in brand value, from 5.7billionto5.7billionto498 million, driven by lost users, advertisers, and revenue.
In contrast, SpaceX’s brand value increased by 11% to 3.8billion,whileStarlink,itssatelliteinternetdivision,wasvaluedat3.8billion,whileStarlink,itssatelliteinternetdivision,wasvaluedat2.4 billion. Both brands are expected to grow as they expand their user bases and revenue streams.
Looking Ahead
Haigh emphasized that Tesla’s future success hinges on innovation and mitigating the negative impact of Musk’s public persona. “Unless Tesla can introduce a range of new products that excite consumers and address the antagonism caused by their leader, they risk being seen as past their peak,” he said.
As Tesla navigates these challenges, the company’s ability to adapt and innovate will determine whether it can reclaim its position as a leading global brand in the automotive and technology sectors.