Elon Musk’s role in driving down spending costs in the federal government has been described as one of the biggest brand destructions. According to US marketing professor Scott Galloway, Musk had alienated Tesla’s customers, one of his most important assets, by backing a president whose supporters show little interest in electric cars and the broader shift to clean transport.
Galloway then pointed to a poll that showed that Tesla was ranked as the 8th most reputable brand in 2021 but has now fallen to 95th. “He’s alienated the wrong people,” Galloway said. “Three-quarters of Republicans would never consider buying an EV. So he’s cozying up to the people who aren’t interested in EVs.” Galloway also listed the sharp drop in Tesla sales across Europe last year, noting that the company saw sales go down 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland, and 33% in Portugal.
Elon Musk’s political participation drove away European EV buyers
Over the last few months, Musk has tried to influence several European political debates, particularly via posts on X. According to The Guardian, his interference turned off many European customers, which is a key market for electric vehicles. Moreover, in April, China’s BYD outsold Tesla in Europe for the first time, according to Jato Dynamics, an automotive market intelligence firm.
“This has arguably been one of the greatest brand destructions,” Galloway told co-host Kara Swisher. He added, “Tesla was a great brand. He’s alienated his core demographic.” The federal job and spending cuts trace back to Musk’s leadership of the Department of Government Efficiency (DOGE), under Trump’s second term, which began in January. Musk secured that position after his super PAC donated $200 million to Trump’s successful November campaign to return to the White House following his 2020 defeat.
Since then, opinion polls have shown widespread disapproval of Musk’s work for Trump. Some studies indicate that a majority of voters dislike how he and DOGE treated federal employees as the department worked through large job reductions. In April, Tesla reported a 71% drop in profits. On an earnings call with investors, Musk said he would start stepping back from DOGE in May. He told shareholders that the job of getting the government’s “financial house in order is mostly done” and that his “time allocation to DOGE will drop significantly.”