Tesla's brand value decreased by $15 billion in 2024 due to an aging product line and Musk's leadership, according to research findings.

Tesla's brand value decreased by $15 billion in 2024 due to an aging product line and Musk's leadership, according to research findings.
Tesla's brand value decreased by $15 billion in 2024 due to an aging product line and Musk's leadership, according to research findings.
  • In 2024, Brand Finance reported that Tesla's brand value decreased for the second consecutive year.
  • Tesla's brand value has decreased from $58.3 billion at the beginning of 2024 to around $43 billion, placing it behind Toyota at $64.7 billion, the company stated.
  • According to David Haigh, CEO of Brand Finance, while some people admire Elon Musk, many do not.

In 2024, Brand Finance reported that the value of the brand decreased by 26%, marking the second consecutive annual decline. The reasons for this decline include an outdated range of vehicles and the CEO's perceived hostility, as stated in research and consulting from Brand Finance.

Tesla's brand value has decreased from $66.2 billion at the start of 2023 to $43 billion, while Mercedes is now the most valuable brand in autos with a value of $64.7 billion, according to the firm's annual ranking.

Brand Finance, a London-based company, conducts extensive consumer surveys and analyzes the financials of thousands of companies, including their revenue, licensing agreements, margins, and more, to determine the monetary value of their brands. The assessments include both corporate brands and the sub-brands associated with individual product lines.

Tesla received feedback from approximately 16,000 survey respondents worldwide, which was part of the firm's ranking this year, as analyzed by Brand Finance.

Wall Street's assessment of is vastly different from how consumers perceive it.

Tesla's stock price surged 63% last year, hitting a record in December, after investors bought up the shares following Donald Trump's election victory the previous month. Musk donated $277 million to help elect Trump and other Republican candidates, and is now positioned to use his influence in the administration to benefit his companies.

David Haigh, CEO of Brand Finance, believes that Musk's political rhetoric and public image have negative consequences for the broader public.

"While some people view him as wonderful, many do not, and his persona may influence your decision to buy an electric vehicle from his company, but it's just one of several factors to consider."

In major markets where Tesla operates factories and sells its cars, including the U.S., Europe, and Asia, Brand Finance found that Tesla's scores declined across key measures such as "consideration," "reputation," and "recommendation."

A consideration score reflects the likelihood of individuals purchasing from a brand, while a reputation score measures the average perception of a brand on a scale from 1 to 10. Additionally, a recommendation score indicates whether individuals are likely to positively promote a brand.

In Europe, Tesla experienced a decrease in its average consideration score from 21% to 16% from 2024 to 2025.

In terms of consideration and recommendation scores, Mercedes and BYD outperformed Tesla outside the U.S.

Despite a high loyalty score of 90% in the U.S., Tesla's recommendation score in the country dropped from 8.2 out of 10 to 4.3.

Tesla's declining scores and brand value indicate that the company's "pulling power is weakening," according to Haigh. There is a risk that Tesla won't be able to sell as many products and at such high prices as it did before, he said.

Despite an increase in worldwide demand for battery electric vehicles, Tesla's deliveries for 2024 decreased by about 1% to 1.79 million. Additionally, Tesla's market share in EVs dropped to 49% from 55% a year earlier in the U.S., according to data from Cox Automotive.

Tesla's brand strength index score, as per Brand Finance, has decreased from approximately 80 to around 65, indicating a decline in brand performance compared to competitors on intangible measures.

If Tesla does not introduce innovative products and address the negative perception of their leader, they will be perceived as declining and their sales will decrease.

Measuring Musk

Musk has been in contact with Russian leader Putin, praised and worked with Italian leader Giorgia Meloni, Brazilian leader Jair Bolsonaro, and Argentine leader Javier Milei, and made public appearances with Israeli leader Benjamin Netanyahu.

Recently, he supported Germany's far-right Alternative for Germany (AfD) party and urged British officials to free convicted fraudster and violent criminal Tommy Robinson, who is known for his anti-immigrant views.

On Monday, during his public remarks after Trump's inauguration, Musk repeatedly used a gesture that historian Ruth Ben-Ghiat, whose work focuses on fascism, described as a Nazi salute and a very belligerent one. Despite being asked for comment, Musk did not respond.

According to Haigh, there will be a small group of consumers who do not care about the company's actions and only want their product. However, there are other levels of people who have varying degrees of concern, ranging from those who refuse to use the product due to principle.

Tesla's leader is closely linked to the company's brand.

Haigh stated that with Tesla, it is evident who the CEO is and their actions will influence the company's reputation.

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SpaceX's Starlink satellite internet business was evaluated by Brand Finance for the first time, in addition to other Musk-led brands, including aerospace and defense contractor SpaceX.

The brand value of X decreased by 26% from $673 million to $498 million, according to the company's estimate. The global awareness of the X brand dropped from 94% in 2022, when it was still known as Twitter, to 78% today. Prior to Musk's takeover and renaming, Twitter had a brand value of $5.7 billion in 2022.

The decline in Brand Finance's overall performance was driven by both the loss of users and advertisers, as well as the name change.

"According to Haigh, Twitter was highly popular, well-liked, and drew a significant amount of advertising. However, when he changed it to X, our data showed a 75% reduction in value. It has continued to decline since then."

SpaceX's brand value has increased by 11% to $3.8 billion, according to Brand Finance, which began assessing the company at the start of 2024. About 45% of U.S. respondents to a survey were familiar with SpaceX, a high ranking for an aerospace and defense company.

The value of the Starlink brand, which is separate from SpaceX, is estimated to be $2.4 billion. This value is expected to rise as the company continues to acquire more customers and generate higher revenue from monthly subscriptions.

On Tuesday at Davos, Brand Finance will release its Global 500 2025 study, which ranks the world's most valuable brands.

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