Musk’s Political Foray Deemed “Brand Destruction” for Tesla as Profits Plummet

Elon Musk’s foray into the Trump administration as head of the “Doge” department has been labeled “one of the greatest brand destructions” for Tesla by marketing professor Scott Galloway. On the Pivot podcast, Galloway argued that Musk’s aggressive job and spending cuts have alienated Tesla’s crucial demographic, leading to a significant decline in brand perception and sales.
Polling data shows Tesla’s reputation nosediving from 8th to 95th place, while sales in key European markets have seen substantial drops, some exceeding 80%. Galloway noted the irony of Musk aligning with a political base largely uninterested in electric vehicles. This strategic misstep, combined with Musk’s interventions in European politics, has allowed competitors like BYD to gain ground, with BYD outselling Tesla in Europe for the first time. The financial repercussions are clear: Tesla recently announced a 71% dip in profits. In response to these challenges, Musk has stated he will significantly reduce his time commitment to “Doge.”