Criticism of the controversial Cybertruck’s build quality has also been rampant online.
Research and consulting firm Brand Finance found that Tesla’s brand value experienced a decline for the second year in a row in 2024. The brand is now valued at an estimated $43 billion, a decrease from $58.3 billion at the beginning of 2024 and $66.2 billion at the start of 2023, according to the firm’s annual ranking.
Despite a 63 percent surge in Tesla’s stock price last year, reaching its peak in December after Donald Trump’s election victory in November, Brand Finance CEO David Haigh noted that Musk’s public behavior has negative repercussions.
Haigh stated, “There are people who think he’s wonderful, but many that don’t. If you are buying electric vehicles, his persona is highly likely to impact your view of whether or not you want to buy one of his company’s cars, but that’s only one of many factors.”
Brand Finance gathered responses from approximately 175,000 survey participants globally, with 16,000 individuals offering their perspectives on Tesla. The findings revealed that Tesla’s scores in crucial areas such as ‘consideration,’ ‘reputation,’ and ‘recommendation’ declined in the US, Europe, and Asia.
In Europe, the ‘consideration’ score, reflecting whether individuals would consider purchasing from the brand, fell from 21 percent to 16 percent on average between 2024 and 2025. Meanwhile, Tesla retained a high loyalty score of 90% in the US, indicating that current Tesla owners were likely to continue driving their vehicles over the next year, as reported by CNBC. However, the US recommendation score dropped from 8.2 out of 10 to 4.3.
Haigh suggested that the declining scores indicate Tesla’s ‘pulling power is weakening,’ and warned of the potential for reduced sales and lower prices. He added, “Unless Tesla can come up with a whole range of new products that will really excite consumers, and unless they can mitigate some of the antagonism caused by their leader, they will be seen as past their peak and will begin to go down.”
Analysts view Trump’s presidency as potentially beneficial for Tesla but detrimental for the electric vehicle sector as a whole. In early January, JPMorgan predicted that approximately 40% of Tesla’s profits could be at risk once Trump assumes office, according to Investor’s Business Daily. This assessment considers Trump’s plans to eliminate EV tax credits and subsidies.
JPMorgan analyst Ryan Brinkman noted, “Tesla does not appear to us on track to dominate the global auto industry amidst the electrification transition, which we view as only the starting point for present valuation.”