Elon Musk's reputation hurting Tesla directly, says report

83% of Americans connect Musk with Tesla.

According to a report, the number of people considering purchasing a Tesla is shrinking, with the main reason being attributed to its CEO, Elon Musk and his polarising persona.

Based on a survey by Caliber - a market intelligence firm, the "consideration score" for Tesla fell to 31% in February 2024, compared to 70% in November 2021. The survey also states that Tesla's consideration score fell by 8 percentage points at the start of the year alone. According to Caliber, there is a strong association between Tesla's reputation and that of Musk for the score. The same survey also stated that Tesla's reputational downfall has helped other brands like Mercedes-Benz, BMW and Audi, which sell both ICE and EV models, to improve during the same period.

Shahar, Silbershatz, CEO of Caliber, mentioned how 83% of Americans connect Musk with Tesla. "It's very likely that Musk himself is contributing to the reputational downfall," he said.

Reports also suggest that Elon Musk's political views and public statements are weighing on Tesla's brand image and demand.

Stephanie Valdez Streaty, Analyst at Cox Automotive, stated, "The EV slowdown is shaping up to be a Tesla slowdown." Reports state that new car registration for Teslas in California (the brand's biggest market in the US) witnessed the first drop in over three years during the fourth quarter of 2023 - despite an increase in overall EV sales.

Brand Finance, a brand valuation consultancy, found that Tesla's reputation fell in 2023 across multiple countries, including the United States, Netherlands, France, United Kingdom & Australia. Only in China and Germany did Tesla's reputation remain intact.

Source: Reuters