Multiple recent reports and surveys reveal that Tesla is now the most avoided EV brand globally, with its sustainability-driven brand value dropping sharply by over $7 billion. This fall in perception is tied to growing scrutiny over Tesla’s labor practices, supply chain issues, and the controversial public behavior of CEO Elon Musk.
Tesla’s overall brand value has plummeted from $66.2 billion to around $43 billion, with key markets like China, the US, the UK, and Australia observing double-digit drops in consumer trust. The company’s reputation has suffered across areas such as ethics, corporate citizenship, and governance, placing it near the bottom in major brand reputation polls.
Consumer loyalty has also taken a hit, with Tesla’s once-loyal customers now increasingly looking to alternative automakers. Sales in the US and Europe have declined notably, with an 8% drop in the US and a 33% plunge in Europe in the first half of the year. Market analysts attribute part of this to a rapidly maturing EV market, intensified competition from established automotive giants, and Tesla’s slow refresh of its vehicle lineup.
Experts warn Tesla’s aggressive political and social stances, combined with increased competition, have harmed the brand's standing more than product issues alone. While Tesla continues to hold a leadership position in the EV segment, this reputation damage could spell challenges ahead if not addressed.
