According to a recent report by Brand Finance, Tesla’s brand value has plummeted by approximately $15 billion in 2024, marking a significant 26% decline from the previous year. This drop reduces Tesla’s total brand worth to $43 billion, placing it behind top automotive giants like Toyota and Mercedes-Benz.

The decline is attributed to an aging electric vehicle lineup, intensifying EV market competition, and CEO Elon Musk’s controversial public image, which has negatively influenced consumer trust and brand perception.

Stagnation in Innovation and Global Sales

Tesla’s vehicle innovation has slowed, leading to stagnation in global sales growth. Key markets like the UK witnessed only a 1.5% sales increase in 2024, highlighting a concerning trend for the company.

Meanwhile, competitors such as BYD have surged ahead, surpassing Tesla in global EV sales by offering affordable, high-tech electric vehicles that appeal to a broad consumer base.

Impact of Musk’s Public Image

Elon Musk’s political views and public behavior have further fueled brand concerns. Some Tesla owners have expressed discomfort with the company’s leadership, prompting them to reconsider their EV purchase decisions. Surveys indicate that a portion of customers are selling their Tesla vehicles due to doubts about the brand’s sustainability and reputation management.

The Road Ahead for Tesla

As the electric vehicle industry grows more competitive, Tesla faces increasing scrutiny over its ability to maintain market dominance. To secure its future, the company must prioritize innovation, address consumer trust issues, and adapt to the rapidly evolving automotive landscape. Without strategic advancements, Tesla risks further decline in brand value and market position.