Elon Musk’s leadership of the Trump administration’s “Doge” department has backfired spectacularly for Tesla, resulting in “one of the greatest brand destructions,” according to marketing professor Scott Galloway. Speaking on the Pivot podcast, Galloway argued that Musk’s political maneuvers have alienated Tesla’s core buyers—the demographic most inclined towards electric vehicles—while he’s seemingly courted a group with little interest in EVs.
The data supports this grim assessment: Tesla’s brand reputation has crashed from 8th to 95th. The impact is also clear in Europe, where sales have seen sharp declines across multiple countries. Musk’s controversial engagement in European politics via X has further contributed to consumer aversion. This brand erosion has directly impacted Tesla’s bottom line, which reported a 71% drop in profits. In light of these challenges, Musk has stated his intention to reduce his involvement with “Doge,” claiming his government reform work is largely done.