Marketing professor Scott Galloway asserts that Elon Musk’s involvement with the Trump administration’s “Doge” department has been a catastrophic blow to Tesla’s brand, calling it “one of the greatest brand destructions.” Speaking on the Pivot podcast, Galloway explained that Musk’s political alignment has alienated Tesla’s core demographic—those most likely to purchase electric vehicles—while he simultaneously courted a political base largely uninterested in EVs.
This strategic misstep is starkly illustrated by Tesla’s brand reputation plummeting from 8th to 95th place in just a few years. European sales figures further confirm the negative impact, showing significant declines across various countries. Musk’s recent political interventions in Europe, particularly on his social media platform X, are also cited as contributing to consumer aversion. The brand erosion has hit Tesla financially, with the company reporting a sharp 71% drop in profits. In response to these challenges, Musk has signaled a reduced commitment to “Doge,” stating his work on government financial reform is largely complete.