Tesla’s brand value dropped 26% in 2024, marking a second consecutive year of decline, according to Brand Finance’s latest report.
Corte Madera: So, it turns out Tesla’s brand value took a big hit in 2024. According to Brand Finance, it dropped by a whopping 26%. That’s two years in a row of falling numbers. Ouch!
The brand value now sits at around $43 billion, down from $58.3 billion at the start of the year. Just a year before that, it was even higher at $66.2 billion. Meanwhile, Toyota is still leading the pack in the auto world with a brand value of $64.7 billion.
Brand Finance, based in London, does a lot of research to figure out how much brands are worth. They look at everything from sales to how people feel about the brand. This year, they surveyed about 175,000 people globally, including 16,000 who shared their thoughts on Tesla.
Interestingly, while Tesla’s stock price shot up 63% last year, the public’s perception seems to be shifting. Brand Finance’s CEO, David Haigh, pointed out that Musk’s public persona and political views might be turning some folks off.
In major markets like the U.S., Europe, and Asia, Tesla’s scores for things like reputation and recommendation have dropped. For example, in Europe, the consideration score fell from 21% to 16%. Competitors like Mercedes and BYD are gaining ground, especially outside the U.S.
Despite this, Tesla still has a strong loyalty score of 90% in the U.S. That means most Tesla owners are sticking with their cars. But the recommendation score took a nosedive from 8.2 to 4.3 out of 10.
Haigh mentioned that these declining scores could mean Tesla’s appeal is fading. If they don’t come up with exciting new products and address some of the negativity surrounding Musk, they might struggle to sell as many cars or at the same prices.
There are already signs of trouble. Tesla’s deliveries dropped by about 1% in 2024, even as demand for electric vehicles is on the rise. Their market share in the U.S. also fell from 55% to 49%.
Brand Finance’s score for Tesla’s brand strength has also slipped from just over 80 to under 65. This score reflects how well a brand is doing compared to its competitors.
Haigh warned that unless Tesla can innovate and improve its public image, it might be seen as past its prime.
On the political front, Musk has been quite active, engaging with leaders from various countries. He’s even endorsed some controversial figures and parties, which might not sit well with everyone.
In the end, consumer attitudes are mixed. Some people might not care about Musk’s actions, while others are put off by them. Tesla’s brand is closely tied to Musk, and his behavior definitely impacts how people view the company.
Brand Finance also looked at Musk’s other ventures, like X and SpaceX. X’s brand value dropped significantly after the name change from Twitter, while SpaceX’s value has actually gone up.
Brand Finance is set to release its Global 500 2025 study soon, so we’ll see how all this plays out in the bigger picture.
