Scott Galloway Critiques Elon Musk on Tesla’s Brand Deterioration

NEW YORK, NY — Prominent marketing professor Scott Galloway criticized Elon Musk during a recent episode of the Pivot podcast, stating that Musk has fundamentally alienated Tesla’s core customer base. Galloway, who co-hosts the podcast, pointed to Musk’s ties with the Trump administration as a significant factor in this brand decline.

During the podcast airing on Friday, Galloway referred to Musk’s severe job and spending cuts within the Trump administration as “one of the greatest brand destructions” ever. He stated that Musk’s decisions undermined Tesla’s image while aligning with a demographic largely uninterested in electric vehicles (EVs).

Galloway noted, “Three-quarters of Republicans would never consider buying an EV. So he’s cozied up to the people who aren’t interested in EVs.” His comments highlighted a polling decline where Tesla fell from the eighth-most reputable brand in 2021 to 95th place.

Sales figures echoed this sentiment, showing drastic declines in Tesla sales across Europe. Reports indicated that sales dropped by 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland, and 33% in Portugal. Galloway emphasized these numbers as alarming, indicating a significant loss of market share.

Musk’s recent public commentary on European politics has also raised eyebrows among consumers. Analysts from Jato Dynamics reported that Tesla’s rival BYD outsold the Austin-based manufacturer in Europe for the first time in April.

<p“This has arguably been one of the greatest brand destructions,” Galloway reiterated during the podcast. He explained that Tesla was once considered a strong brand but is now facing challenges due to Musk’s political affiliations.

Musk’s role in the so-called Department of Government Efficiency (Doge) under Trump’s presidency began in January, after his super PAC contributed $200 million to Trump’s campaign. Since then, public sentiment has turned against Musk, particularly regarding actions perceived as detrimental to federal employees.

By the end of April, Tesla reported a 71% dip in profits, prompting Musk to announce during an investor call that he would reduce his involvement with Doge, stating, “My time allocation to Doge will drop significantly.” This shift comes as a relief for investors who have been growing increasingly concerned about Tesla’s market position and direction.

As public opinion continues to reflect dissatisfaction with Musk’s leadership strides, experts like Galloway remain cautious, emphasizing that the situation requires careful management to restore Tesla’s branding.