The value of the Tesla brand broke up by 26 percent in 2024. The behavior of CEO Elon Musk was probably an essential factor.
• Teslas brand value breaks a
• Elon Musk increasingly politically committed
• Musks could influence the purchase decision from consumers
Tesla’s brand value has been reduced to an estimated $ 43 billion, after $ 58.3 billion at the beginning of 2024 and 66.2 billion in early 2023. ) or Mercedes ($ 53 billion). This resulted in an analysis by the research and consulting company Brand Finance.
Musk and Trump
In addition to an aging vehicle range, the advisory company based in London in particular leads the “antagonistic” behavior of Tesla boss Elon Musk as the cause of the significant loss of the brand value. At Tesla there is an extremely close connection between the brand and CEO.
Musk has massively supported Donald Trump during his presidential election campaign. After its move into the White House, investors are now relying on the fact that this will be reflected in a reduction in annoying federal regulations for autonomous driving. Since Tesla has large plans in this area – among other things, the recently announced Robotaxi service, which is scheduled to start in 2026 – the share has been able to significantly increased since Trump’s victory on November 5 and even reached a record high.
Elon Musk’s questionable political commitment
In addition, Musk is also politically involved outside the United States. According to reports, he maintains contacts with Israel’s Benjamin Netanyahu, Italy’s Giorgia Meloni, Brazil’s Jair Bolsonaro, Argentina’s Javier Milei and even the Russian President Vladimir Putin.
In Germany, he supports the alternative for Germany (AfD) in the Bundestag election campaign, whose state association in Saxony is classified by the State Office for the Protection of the Constitution as “secured right -wing extremist”. Four weeks before the election, the Tech billionaire was switched on from the USA at the official campaign opener of the AfD in Halle (Saale) at the beginning of the speech by party leader Alice Weidel and promoted the AfD.
Negative headlines that allegedly located him in the right corner also made Elon Musk because he repeatedly made a gesture that reminded of the Nazi greeting during a public speech after Trump’s inauguration.
Musk harms Tesla
Critics accuse Elon Musk of wanting to influence the outcome of the Bundestag election with the help of his enormous reach on his platform X. Individual companies in Germany such as the Baden-Württemberg energy supplier Badenova, the Hamburg eco-electricity provider Lichtblick or the drugstore chain Rossmann have already announced that they wanted to boycott Tesla in the future due to Musks.
Brand-Finance CEO David Haigh also emphasized that the political appearance of the Tesla boss also has disadvantages for the group: “There are people who find it great, but many don’t,” quotes “CNBC” Haigh. “If you want to buy an electric vehicle, your personality will probably affect your decision whether you want to buy a car of your company. But that’s just a factor of many.”
According to Haigh, however, the declining brand value indicates that the “attraction of the company wanks”. This can lead to Tesla “selling fewer products and no longer at the same high prices as before”. In 2024, the e-car manufacturer recorded a small drop in sales by about one percent, although global demand for electric cars attracted.
“There are a small group of people who say: ‘I don’t care what he is doing, I just want the product,” said Haigh. “Then there are different levels of people who are interested – to those who say: ‘I will not buy this product on principle.’
Editor finance.net
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