Elon Musk might just be at the heart of why Tesla has dropped value in the last year, as the public persona of the company’s CEO appears to have had a negative effect beyond his own reputation.
While Elon Musk has remained a prominent figure for over a decade now, he’s catapulted himself into the spotlight in the past year especially. Not only has he become by far the richest individual in the world with a net worth that nearly doubles the next highest on the list, but he has also made a major push into US politics.
He has closely allied himself with President Donald Trump, and has been rewarded with a position at the head of the new Department of Government Efficiency (DOGE), but these actions haven’t exactly nurtured his image worldwide.
There have been multiple exoduses from Twitter, now X, since Musk purchased it for $44,000,000,000 back in 2022 – most of which are due to the billionaire’s increasingly far right views that populate the platform.
This appears to have bled into his other businesses too, as Tesla has recently reported another drop in brand value after seeing the same occur from 2023 to 2024.
Tesla’s value continues to drop, and Elon Musk might be at the heart of it all (Smith Collection/Gado/Getty Images)
However, while the year-on-year decline at the start of 2024 was only around $7.9 billion, this figure nearly doubles to $15.3 billion if you compare the start of 2024 to 2025.
This also marks a two-year decline of around $23.2 billion, which is worrying for the electric vehicle manufacturer despite remaining one of the most valuable companies in the entire world.
While some might point towards repeated recalls or the disappointing Cybertruck release for this decline, experts indicate that CEO Elon Musk is actually at the heart of why Tesla’s value has dropped so significantly.
Recent actions like an alleged Nazi gesture and targeted harassments of foreign government officials are among many of the actions that have soured both Musk and Tesla’s image globally, and it appears to be stopping many from buying the company’s cars.
Brand Finance CEO David Haigh explains in reference to Musk’s current reputation: “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.”
There’s certainly no shortage of EV options on the market now, and even some of the biggest tech creators are making the jump to non-Tesla brands.
Based on a survey by Brand Finance, which collected data on Tesla from over 16,000 participants, the company’s ‘consideration’ score – measuring how likely people would be to buy from a brand – dropped by 16% down to just 21% between 2024 and 2025.
Musk’s political actions are reportedly a big reason why many aren’t so keen on buying their own Tesla (Justin Sullivan/Getty Images)
The ‘recommendation’ score in the US alone dropped from 8.2/10 to 4.3/10, but the ‘loyalty’ score – measuring how likely current owners are to keep driving their Tesla for the next 12 months – remained high at 90%.
This could also be why Tesla reported a sales decline last year for the first time in nearly a decade, as many argue that Musk’s politics are alienating the userbase most likely to invest in electric vehicles.
However, Trump’s administration could likely prove fruitful for the company as Musk’s close ties could lead to relaxed regulation, and the markets seem to suggest this too with a dramatic market cap increase following the election results last November.
