What Every Company Can Learn from Tesla’s Brand Fallout
Chris Langathianos • April 10, 2025

What Every Company Can Learn from Tesla’s Brand Fallout 

Tesla's recent struggles show how controversies can damage a brand. CEO Elon Musk's recent controvercial decisions have alienated a significant portion of Tesla's eco-conscious customer base. The fallout has been severe:


  • Stock Decline: Tesla's stock dropped 36% in Q1 2025, erasing $460B in market cap.
  • Sales Impact: Vehicle deliveries fell 13% year-over-year in Q1 2025, with market share in Europe and Germany plummeting.
  • Customer Trust: Favorability among Democrats dropped 23% from January to July 2024, while Tesla's brand consideration score halved since 2021.


This highlights a key lesson: brands risk fallout when taking sides on divisive issues, and this is particularly true in politics. It highlights how important it for brands to remain focused on their core mission, establish authenticity, and earn trust from the market.


You may be asking yourself, well hold on, how is this any different that what other brands like Ben and Jerry’s have done over the years. The key difference is that even though they may express views that some may find divisive, these views didn’t counter their core brand essence, in fact it enhanced it. 


Conflicts Hurting Brand Performance


Brand Value Losses

Tesla experienced a hit to its brand value following statements from its CEO that many perceived to be divisive or off-brand. Survey results showed that 45% of respondents viewed the impact as "negative," while 40% described it as "extremely negative" [2].


Customer Trust Breakdown

Tesla's favorability ratings have sharply declined, particularly across political affiliations:


The number of Tesla owners identifying as Democrats dropped from 39% in 2023 to 26% in 2024 [3]. In California - a key market for electric vehicles - registrations of the Model Y fell by 17% during Q1 2024 compared to the same period the previous year [3]. And this is before the actions taken by the Musk-led Department of Government Efficiency (DOGE).


These changes in consumer sentiment have led to immediate and vocal reactions from the public.


Political Actions and Public Response

Departing from Tesla's core brand image, the CEO's political endorsements sparked widespread backlash. At its core are the many Tesla consumers who eagerly bought Teslas because it aligned with support for green energy and sustainability initiatives. 


"He has significantly alienated most of his buying base. It's going to kill the business. I can't imagine a single Democrat, or, let's say, very few of them, willing to buy a Tesla at this point", said investor Mark Spiegel [3].


"This final stance of Elon has put me in a really difficult moral position. I'm driving a Cybertruck and now it's like a MAGA truck," shared Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management [3].


Public perception of Tesla has shifted dramatically, leading to protests at showrooms and incidents of vandalism targeting Tesla vehicles [1]. This growing public discontent signals deeper challenges for the brand, which will be explored further in the next section.


Are customers abandoning Tesla because of Elon Musk and ...


Business and Brand Damage

Tesla's involvement in contentious political matters has led to clear financial setbacks and damage to its reputation.


Q1 2025 Performance Drop

Tesla’s political controversies have shaken customer confidence, and the impact is now visible in its business results. The company delivered 336,681 vehicles in Q1 2025, marking a 13% drop compared to 386,810 units in Q1 2024 [4]. Here’s how key metrics reflect this downturn:

"We knew first quarter Tesla deliveries would be soft but these numbers were bad...they were a disaster on every metric. Refresh issues but brand crisis key."  – Dan Ives, Wedbush Securities Analyst [4]


This decline goes beyond numbers - it’s also chipping away at Tesla’s identity as a market leader.


Decline in Environmental Leadership

Tesla’s position as a leader in sustainability has taken a hit. The company’s brand consideration score, which peaked at 70% in November 2021, plummeted to 31% by February 2025 [5]. Tim Calkins, a marketing expert from Northwestern University's Kellogg School of Management, explains:  "It is hard enough to win sales without getting into politics." [5]


Erosion of Leadership Trust

Elon Musk’s political activities have further complicated Tesla's brand image. With 83% of Americans directly associating Musk with Tesla [5], his actions have become intertwined with the company’s reputation. Public trust is waning, as 42% of respondents held an unfavorable view of Musk in February 2024, compared to 34% in April 2022 [5].


"It's very likely that Musk himself is contributing to the reputational downfall."  –Shahar Silbershatz, Caliber CEO [5]

Ed Kim, a crisis management expert at AutoPacific, adds: "A modest but growing number of EV shoppers are increasingly put off by Elon Musk's behavior and politics and are now finding viable alternatives to Tesla in the marketplace." [5]


How to Fix Brand Alignment


Return to Core Mission

Tesla needs to refocus on its primary goal: accelerating the transition to sustainable energy. This involves prioritizing innovation, setting clear objectives, and tailoring strategies to local markets.

By realigning internally, Tesla can begin to repair the trust lost due to recent political controversies. These adjustments also create a foundation for leveraging insights from the latest market research.


Improve Brand Management

Eric Dezenhall, a crisis management expert, advises focusing on operational excellence rather than political narratives [1]. For Tesla, this means shifting its messaging to spotlight product innovation and sustainability while steering clear of divisive topics. With 85% of investors expressing concerns about the negative impact of political involvement on Tesla [2], the company must prioritize rebuilding trust by staying true to its original mission.


Managing Risk in Brand Strategy

Tesla's situation highlights a key takeaway: diving into divisive issues can seriously damage a brand's reputation. The company's nearly 40% share drop in early 2025 [2] is a clear example of how political controversies can erode both brand value and customer confidence.


Crisis management expert Eric Dezenhall puts it plainly: "It's almost impossible to be a politically divisive figure while running a consumer brand" [1].


To handle these risks effectively, brands can focus on specific strategies. Here are three areas to consider:

These steps provide a clear path for addressing the damage. Dezenhall further emphasizes:


"The aim of crisis management is to stop an attack, not improve an image. First, get back to business. Leave politics to somebody else. This isn't your thing" [1].


To strengthen their position, brands should also rely on market research to guide their next moves. With 85% of stakeholders believing political involvement harms a brand [2], data-driven decisions can help leaders refocus on operational priorities and core values, ensuring long-term stability and success.

Q4 Brand Readiness Checklist: Setting the Stage for a Strong 2026

By Chris Langathianos • August 12, 2025
For many companies, the fourth quarter is both a sprint and a launchpad. You’re closing out revenue goals, but you’re also laying the groundwork for the year ahead. The brands that finish strong and start fast aren’t lucky — they’re intentional. They know their customers, they have a clear positioning strategy, and they operationalize that strategy across every part of the business. There are currently a lot of economic factors that need to be considered – from consumer uncertainty to tariffs. If you want your brand to stand out in 2026, here’s your Q4 readiness checklist, built on the principles we use at Brandigo: deep customer insight, data-conscious positioning, and smart use of tools — including AI — to make your marketing more effective and scalable. 1. Revisit Your Customer Research Why it matters: Markets shift quickly. According to Salesforce’s State of the Connected Customer report, 71% of consumers expect companies to deliver personalized interactions, and 76% get frustrated when this doesn’t happen. Action : Review customer and prospect data from the last 12 months. Conduct a quick pulse survey or a set of short customer interviews to understand evolving needs, priorities, and challenges. Look for gaps between what you think your customers want and what they’re actually telling you. 2. Audit Your Brand Positioning Why it matters: Even the most powerful creative loses steam if it’s not anchored in a clear, differentiated brand position. McKinsey research shows companies with strong, consistent brand positioning achieve up to 20% higher profitability than competitors. Action: Review your current positioning statement and messaging pillars. Ask: Are we still saying something truly unique? Is it backed by proof points customers care about? Test your positioning with a sample of your target audience before rolling into new campaigns. 3. Align the Organization Around the Brand Why it matters: A brand strategy that only lives in the marketing department won’t move the needle. Operationalizing your brand means integrating it into sales conversations, customer service interactions, hiring practices, and product development. Action : Host a Q4 “brand alignment” session with leaders from every department. Provide a simple one-page “brand playbook” that outlines tone of voice, value propositions, and core messaging. Encourage each department to share how they’ll bring the brand to life in their own work. 4. Review and Refresh Content for Q4 Campaigns Why it matters: The end of the year is noisy. To stand out, you need content that’s relevant, timely, and connected to your brand story. HubSpot reports that companies publishing 16+ blog posts per month generate about 3.5 times more traffic than those publishing 0–4. Action: Map your content to both year-end offers and early-year positioning. Refresh high-performing evergreen content with updated data, visuals, or CTAs. Plan for post-holiday engagement — not just pre-holiday promotions. 5. Embrace AI to Accelerate Marketing Workflows Why it matters: AI isn’t replacing brand strategy — it’s amplifying it. According to PwC, 86% of CEOs say AI is a “mainstay” in their offices, with the biggest gains coming from productivity and personalization. Action : Identify 1–2 AI tools that can help you speed up specific workflows, like content drafting, image creation, or data analysis. Set clear rules for how AI will support — not replace — your team’s strategic and creative decision-making. Train your team to use AI ethically, ensuring your brand’s authenticity is never compromised. 6. Set Measurable Goals for the New Year Why it matters: The best time to plan Q1 is before Q4 ends. Brands that start January with clarity waste less time “warming up” and more time gaining market share. Action : Define key brand metrics for Q1: awareness, consideration, engagement, and conversion. Align these with broader business goals, ensuring they’re measurable and trackable from day one. Set up dashboards or reporting tools so progress is transparent across the organization. In Short… Your Q4 is more than just the final quarter of the year — it’s your brand’s launchpad into the next. By combining deep customer insight, differentiated positioning, internal alignment, and the smart use of tools (including AI), you can finish strong, start stronger, and keep your brand ahead of the curve.

Treading Carefully: Why Today’s Brand Strategies Must Acknowledge Consumer Anxiety

By Chris Langathianos • August 1, 2025
According to the June 2025 Consumer Economic Pulse study from Angus Reid , Americans are starting to see glimmers of hope in the economic landscape. Positive sentiment about the U.S. economy has reached its second-highest level since early 2023, and fewer people now expect the situation to worsen in the next six months. That’s the good news. But dig a little deeper, and a more complex story unfolds. While economic outlook is trending upward, consumer behavior reveals lingering caution, financial stress, and a pullback on spending. Half of Americans have switched brands to save money this year. Three-quarters have cut back on dining, entertainment, and other non-essential spending. Nearly one in three is accumulating more personal debt. And 41% have scaled back or cancelled summer travel plans due to economic concerns. This presents both a challenge and an opportunity for marketers. In this liminal moment—where hope is rising but hardship remains—brands must evolve how they speak, sell, and serve. Value Is Non-Negotiable In today’s marketplace, value doesn’t just mean low prices. It means helping consumers feel smart, secure, and seen. The fact that more than half of consumers are switching brands to save money signals that brand loyalty is fragile. People aren’t abandoning brands out of disinterest—they’re doing it out of necessity. This creates an opening for smart challengers and private labels to win on value, transparency, and quality. But it also gives established brands a chance to double down on relevance. Marketers should resist the temptation to race to the bottom on price. Instead, consider how to enhance perceived value—through bundling, loyalty rewards, subscription offers, or stronger emotional positioning. People are willing to invest in brands that align with their values, solve real problems, and offer tangible, repeatable benefits. Empathy Is the New Differentiator Brands that acknowledge the consumer’s reality—without exploiting it—will earn trust. With 77% of Americans cutting discretionary spending and 49% saying their debt is growing or stagnant, there’s a prevailing sense of financial fatigue. Tone-deaf or overly aspirational messaging risks alienating your audience. Instead, brand communications should reflect humility, optimism, and empathy. Think: practical luxury, not excess. Thoughtful convenience, not indulgence. Hopeful messaging grounded in the now—not the fantasy of pre-2020 normalcy. Brands that humanize the experience—by showing they understand and are here to help—can become beacons in uncertain times. Strategic Adjustments to Brand Positioning In light of this shifting sentiment, here are four strategic pivots marketers should consider: Reassess Category Role: Is your product a necessity, an affordable indulgence, or a delayed purchase? Adjust the way you frame your offering accordingly. Shift Messaging from Aspiration to Empowerment : Replace glossy perfection with realistic outcomes. Focus on how your brand helps people solve a problem, save time, or make smarter decisions. Lean into Purpose—but Make It Practical: Consumers still care about sustainability, inclusivity, and social impact—but they’re also watching their wallets. Connect your brand purpose to tangible, everyday outcomes. Elevate Financial Fluency: In categories like financial services, consumer goods, and health & wellness, brands that help consumers make confident financial choices will gain favor. Educational content, budget calculators, or simplified comparison tools can differentiate your offering. A Note on Travel and Experience Spending Interestingly, while travel budgets are being adjusted, 41% of Americans still plan to take a vacation this summer. Domestic destinations are thriving, and international travel is slowly rebounding. For hospitality, entertainment, and CPG brands, this signals an opportunity to tap into the consumer’s desire for escapism—just with a tighter grip on spending. Brands in these sectors should emphasize ease, affordability, and memory-making. Offer flexible packages, small indulgences, or community-focused experiences. Even small upgrades—like “staycation bundles” or “budget-friendly luxury”—can go a long way. As We Always Say: Top Into The Functional & The Emotional In uncertain times, consumers are not seeking perfection. They are seeking dependability. Brands that offer security—emotional, functional, or financial—will win. Now is the time to audit every consumer touchpoint and ask: Are we building trust? Are we helping our customers feel in control? Are we making life easier or harder? Because if we’ve learned anything from the latest Consumer Economic Pulse, it’s this: people are ready to believe again. But they need brands to meet them halfway—with clarity, compassion, and value they can count on.