Tesla's Brand Value Drops $23 Billion In Two Years Despite Stock Skyrocketing 244%, Report Reveals

According to a recent study by Brand Finance, Tesla's brand value has taken a significant hit over the past two years, shedding a whopping $23 billion. The brand worth of the EV powerhouse has decreased from $66.2 billion at the beginning of 2023 to $43 billion now, a 35% decrease in just two years.

What makes this even more surprising is that Tesla's stock price has gone up by 244% in the same time. While investors seem confident, regular customers, especially in Europe and Asia, are not as excited about the brand.

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What's Behind the Decline?

Brand Finance asked about 175,000 people worldwide what they thought about companies, including around 16,000 who shared their opinions on Tesla. The research and consulting firm says the brand's decline is caused by a few big issues, like Tesla's older vehicle lineup and the controversial actions of its CEO, Elon Musk. The findings revealed a noticeable shift in consumer perception, with Tesla struggling to maintain its appeal in some of its biggest markets.

In Europe, Tesla's consideration score – a measure of whether people would consider buying from the brand – dropped from 21% to 16% over the past year. According to CNBC, rivals like BYD and Mercedes have surpassed Tesla in important customer metrics outside the U.S., indicating heightened rivalry in the electric vehicle market.

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Loyalty Still Strong, But Recommendation Wanes

Most current Tesla owners are expected to remain loyal to the brand despite these difficulties, as seen by the company’s high 90% loyalty rating in the US. However, its recommendation score has dropped, plummeting from 8.2 out of 10 to just 4.3. This indicates that fewer people are likely to speak positively about the brand to others.

Elon Musk's Role

Elon Musk's actions and comments are shaping people’s perceptions of Tesla. Brand Finance CEO David Haigh says, "There are people who think he's wonderful, but many that don't." Tesla’s "pulling power is weakening."

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Musk's controversial comments and actions have drawn admiration and criticism, with some consumers reportedly shying away from Tesla due to his influence. This "Musk effect" highlights the tight association between the Tesla brand and its outspoken leader.

A Warning for the Future

Brand Finance warns that Tesla's ability to command premium prices and maintain strong sales could be at risk if the company doesn't address these issues. "Unless Tesla can come up with a whole range of new products that will really excite consumers and unless they can mitigate some of the antagonism caused by their leader, they will be seen as past their peak," Haigh said.

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