Tesla’s Epic Brand Collapse: How Musk’s Politics Cost Him His Core Customers

Marketing guru Scott Galloway has identified what might be the most spectacular business blunder of the decade: Elon Musk’s decision to dive headfirst into Trump politics has systematically destroyed Tesla’s brand among the very people who actually buy electric cars.
The business case is straightforward and damning. Tesla built its reputation as the premium choice for environmentally conscious consumers who were willing to pay extra for cutting-edge technology and clean energy. These customers made Tesla the 8th most reputable brand in America by 2021.
Then Musk made a catastrophic strategic error. He embraced Trump’s political agenda and took charge of the “Doge” government efficiency program, implementing harsh federal job cuts that horrified his liberal customer base. Meanwhile, he courted conservative supporters who fundamentally oppose electric vehicles.
The result? Tesla’s brand reputation has cratered to 95th place – a business school textbook example of how to alienate your most valuable customers. European sales data reveals the brutal reality: customers are voting with their wallets, abandoning Tesla in favor of competitors who don’t carry Musk’s political baggage.
This wasn’t just about losing some sales – it was about destroying years of carefully built brand equity. Tesla’s 71% profit decline tells the story of a company that forgot its core business mission in pursuit of political influence.
Galloway’s analysis cuts to the heart of the strategic failure: “He’s alienated his core demographic.” In trying to serve two masters – his progressive customers and his conservative political allies – Musk has effectively served neither.
The business lesson is clear: when your personal politics directly conflict with your customer base’s values, the customers will find alternatives. And in today’s competitive EV market, they have plenty of options.