Tesla’s brand value has seen a sharp decline in 2024, according to a report by Brand Finance. The company’s brand worth fell by 15billion,a2643 billion. This places Tesla behind competitors like Toyota and Mercedes-Benz. The decline is due to several factors, including an aging EV lineup, rising competition, and the controversial public image of CEO Elon Musk.
One of the biggest challenges for Tesla is its slowing innovation. The company’s global sales growth has stagnated, with only a 1.5% increase in key markets like the UK. Meanwhile, competitors such as BYD have surged ahead by offering affordable and high-tech EVs that appeal to a broader audience. This has put pressure on Tesla to innovate and stay competitive.
Elon Musk’s public behavior and political views have also impacted Tesla’s reputation. Some customers have expressed discomfort with the company’s leadership, leading them to sell their Tesla vehicles. Surveys show that concerns about the brand’s sustainability and reputation management are driving this trend.
As the EV market becomes more competitive, Tesla must focus on innovation and rebuilding consumer trust to maintain its position. Without significant changes, the company risks further declines in brand value and market share.
