Tesla’s brand value fell by $15 billion in 2024 — due to «antagonism» Elon Musk and an aging model lineup
- by ITC.UA
- Jan 21, 2025
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According to the research firm Brand Finance (via CNBC), Tesla’s brand value currently stands at $43 billion compared to $58.3 billion at the beginning of 2024 — marking a decline for the second consecutive year.
At Brand Finance
Brand Finance, based in London, conducts comprehensive consumer surveys and analyzes financial data of thousands of companies, studying revenue, licensing deals, margins, etc., to evaluate the monetary value of brands. Ratings include corporate brands and sub-brands associated with individual product lines.
, reasons for the decline include aging model lineup and “antagonism” by Tesla’s CEO Elon Musk.
“There are people who consider him brilliant, but there is also a significant number who disagree,” says Brand Finance CEO David Haigh. “If you’re buying electric vehicles, Musk’s persona will likely influence your opinion on whether you want to buy one of his company’s cars, but it’s just one of many factors.”
According to Brand Finance, currently, the most valuable brand in the automotive industry is Toyota with a valuation of $64.7 billion, followed by Mercedes at $53 billion.
In this year’s ranking, Brand Finance analyzed responses from approximately 175,000 respondents, including about 16,000 people who shared their thoughts on Tesla — and they turned out to be very different from Wall Street ratings. According to the company’s report, Tesla’s automotive company indicators (on key parameters like “purchase consideration,” “reputation,” and “recommendation”) fell in some major markets.
The “consideration” rating (i.e., whether people would consider buying from the brand) for Tesla significantly dropped in Europe — from 21% to 16% on average from 2024 to 2025; however, in the USA the automaker still has a fairly high “reputation” score — 90%.
Haigh notes that the decrease in indicators and brand value of Tesla is a sign that “the company’s pulling power is weakening,” so there is a risk that it “will not be able to sell as many products at such high prices as before.” Recall that in 2024, Tesla saw its annual sales volume of electric vehicles decline for the first time in over a decade — to 1.79 million units.
Tesla’s brand strength index, according to Brand Finance, also decreased from 80 to 65 — a figure that shows how well the brand performs compared to competitors on intangible parameters.
“If Tesla cannot offer a range of new products that genuinely interest consumers, as well as somewhat reduce the ‘antagonism’ of its leader, it will be considered a brand that has peaked and is heading for a decline,” sums up Haigh.
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