Elon Musk, the controversial CEO of Tesla, has been under scrutiny for his behavior in recent years. This behavior is believed to be a significant contributing factor in the declining sales of Tesla, according to a corporate reputation tracking firm Caliber.
Survey data reported by Reuters indicated a significant drop in Tesla’s “consideration score” from 70% to 31% between November 2021 and January 2022. This metric, used by Caliber to measure consumer interest in brands, suggests a loss of trust and confidence in the company. In contrast, rival electric vehicle manufacturers Audi, BMW, and Mercedes saw a slight increase in consideration scores during the same period.
A study by analytics firm CivicScience revealed that Elon Musk’s approval rating among US consumers has declined, with 42% viewing him unfavorably. This negative perception of Musk has been attributed to his controversial conduct, including promoting conspiracy theories and engaging in harmful rhetoric.
Association of Tesla with Musk
According to Caliber, 83% of Americans surveyed associate Tesla directly with Elon Musk. This association has led to a negative impact on Tesla’s reputation, as Musk’s behavior reflects on the company as a whole. Caliber CEO Shahar Silbershatz expressed concern that Musk’s actions are likely contributing to the reputational downfall of Tesla.
Data from brand valuation consultancy Brand Finance shows a decline in Tesla’s reputation among consumers in various countries, including the Netherlands, US, UK, France, and Australia. This decline is believed to be linked to Musk’s polarizing behavior and controversial statements.
While Musk’s behavior is considered a significant factor in Tesla’s declining sales, it is not the only issue at play. The company has cited manufacturing delays, shipping disruptions, and increased competition from other electric vehicle providers as additional challenges impacting sales. Tesla has also warned investors that its growth in 2024 may be lower than in previous years as it prepares for its vehicle lineup for 2025.
Elon Musk’s controversial behavior has undoubtedly had an impact on Tesla’s sales and reputation. As consumers closely associate Tesla with Musk, his actions and statements directly influence public perception of the company. Moving forward, Tesla must address these challenges and strive to rebuild trust and confidence among consumers to regain its foothold in the electric vehicle market.