Tesla's Brand Value Crashes 36% as Musk's Politics Alienate Consumers

$27.6 billion. That's what Tesla's brand is worth today—down a staggering 58% from its $66.2 billion peak just two years ago. The electric vehicle pioneer has now suffered three consecutive years of brand value decline, according to Brand Finance's 2026 Global Brand Rankings.

In 2025 alone, Tesla shed $15.4 billion in brand value, a 36% drop that marks the steepest single-year decline in the company's history. The culprit? Elon Musk's increasingly controversial political ventures have finally caught up with his business empire.

When CEOs Become Politicians

Brand Finance CEO David Haigh didn't mince words: Musk's political "overreach" has severely damaged Tesla's consumer appeal. As Musk took on his role leading the Department of Government Efficiency (DOGE) under Donald Trump, his focus shifted from cars to politics—and consumers noticed.

The numbers tell a brutal story. Tesla's recommendation score in the US hit a record low of 4.0 out of 10, meaning Americans simply won't tell friends and family to buy a Tesla. That's a dramatic fall from 8.2 in 2023, when the brand still carried its innovative cool factor.

Surveys across 18 countries with over 1,000 respondents each revealed declining scores on "reputation, recommendation, trust, and coolness"—particularly in Europe and Canada. Musk's endorsements of Germany's far-right AfD party and UK's Tommy Robinson didn't just spark headlines; they sparked a consumer backlash.

Innovation Stagnation Meets Rising Competition

Beyond politics, Tesla faces a more fundamental challenge: it's no longer the only game in town. The company still relies on its aging lineup of Model S, 3, X, and Y vehicles, while competitors flood the market with new options at lower prices.

China's BYD exemplifies this shift, with its brand value surging 23% to $17.3 billion. Meanwhile, five automakers now outrank Tesla: Toyota leads with $62.7 billion, followed by Mercedes-Benz, Volkswagen, and Porsche.

The irony? Tesla owners remain remarkably loyal, with loyalty scores actually rising from 90% to 92% in the US. Existing customers love their cars—but the brand struggles to attract new buyers.

Wall Street vs. Main Street

This disconnect reveals a fascinating paradox. While Tesla's brand value crashed, its stock price gained 11% in 2025. Investors bet on the company's robotaxi service launch in Austin and autonomous driving breakthroughs. Musk's $1 billion stock purchase in September further boosted shares.

But financial markets and consumer sentiment operate in different worlds. Investors see future potential; consumers see present-day controversies. The elimination of federal EV tax credits—ironically under the Trump administration Musk supports—adds another headwind.

The SpaceX Factor

Interestingly, Musk's other ventures tell a different story. Starlink, SpaceX's satellite internet service, cracked Brand Finance's top 500 for the first time with a $5.19 billion valuation. But Haigh notes this success won't help Tesla: "They're treated entirely separately."

This separation matters. While Starlink enjoys a "unique proposition" in satellite internet, Tesla must compete in an increasingly crowded automotive landscape where brand perception directly impacts sales.