Tesla Just Lost $15 BILLION—And It’s All Elon Musk’s Fault!
Tesla’s brand value has taken a huge hit, dropping by $15 billion due to controversies linked to Elon Musk. Analysts from Brand Finance say Tesla’s value has fallen for the second year in a row, from $58.3 billion in early 2024 to $43 billion now. While current Tesla owners remain loyal, fewer people are recommending the brand in key markets like the U.S., Europe, and Asia.
The drop in value is caused by several issues, including major vehicle recalls and complaints about the Cybertruck’s build quality. Musk’s public behavior has also added to the problem. He was accused of making a “Nazi gesture” during Trump’s inauguration, which led to even more controversy. Some big investors have started selling their Tesla shares, including one recent sale worth $585 million, blaming Musk’s actions as a key reason.
Brand Finance CEO David Haigh warned that Musk’s controversial image is hurting Tesla’s reputation. He said this could make it harder for Tesla to charge high prices for its cars. Haigh also said Tesla must release exciting new products and fix the damage caused by Musk’s behavior. If not, people may start seeing Tesla as a company that is past its best days.
Tesla is also facing other challenges. The new Trump administration has proposed cutting tax credits for electric vehicles. According to JPMorgan analysts, this could reduce Tesla’s profits by up to 40%. Even with these problems, Tesla still has strong brand loyalty. However, its future success may depend on whether it can move past these ongoing issues.
