'He's Alienated The Wrong People' — Scott Galloway Blames Musk's Politics For Tesla's Fall From 8th To 95th In U.S. Brand Rankings

Yahoo

20 hours ago

"He's alienated the wrong people," marketing professor Scott Galloway said recently, blaming Elon Musk for Tesla's (NASDAQ:TSLA) brand slide. Galloway argued on the "Pivot" podcast that politics, not products, now steer the automaker after a string of rough quarters and mounting protests.
Tesla ranked No. 95 in the latest Axios Harris Poll 100, down from No. 8 in 2021, Axios said. The brand stood at No. 42 in 2019 and No. 63 last year, underscoring a steady drift before the latest plunge. Sister companies SpaceX and X also landed at No. 86 and No. 98 respectively — a sign that the reputational chill is hitting all corners of his empire.
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Financials mirror the fall. In its Q1 earnings report in April, Tesla said net income slumped 71%, automotive revenue slid 20%, and free cash flow turned positive, reaching $664 million.
"Tesla was a great brand," Galloway said. He called the downturn, "one of the greatest brand destruction." He added, "the rivers have reversed, and the tide has turned entirely against them," referring to Musk's political alignment and its impact on Tesla's reputation.
Musk steered almost $300 million to President Donald Trump–aligned committees while advising the White House's Department of Government Efficiency, angering early EV adopters who skew liberal. "3/4 of Republicans would never consider buying an EV," Galloway said. "He's cozied up to the people who aren't interested in EVs."
Pushback soon spilled onto the streets. A March fire at a Tesla showroom in Rome destroyed 17 cars. Activists organized "Tesla Takedown" rallies in Berlin, Stockholm and San Francisco in April. Tesla's global sustainability lead canceled a Rome conference appearance over security concerns as vandalism cases multiplied.
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Musk said in May he was returning full time to his companies, posting on X, "Back to spending 24/7 at work and sleeping in conference/server/factory rooms." He said his round-the-clock shift would center on X, xAI, Tesla and a May 27 Starship launch.
During last month's Qatar Economic Forum, Musk said he would "do a lot less" political spending because "I think I've done enough." He added that he planned to stay Tesla's CEO for at least five years.
Investor confidence in Tesla has increasingly hinged on the recent launch of its robotaxi pilot—launched last month in Austin, Texas—and consistent Model Y deliveries. Both developments will be critical indicators for investors.
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This article 'He's Alienated The Wrong People' — Scott Galloway Blames Musk's Politics For Tesla's Fall From 8th To 95th In U.S. Brand Rankings originally appeared on Benzinga.com
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