According to the research firm Brand Finance (via CNBC), Tesla’s brand value currently stands at $43 billion compared to $58.3 billion at the beginning of 2024 — marking a decline for the second consecutive year.
At Brand Finance
Brand Finance, based in London, conducts comprehensive consumer surveys and analyzes financial data of thousands of companies, studying revenue, licensing deals, margins, etc., to evaluate the monetary value of brands. Ratings include corporate brands and sub-brands associated with individual product lines. , reasons for the decline include aging model lineup and “antagonism” by Tesla’s CEO Elon Musk.
“There are people who consider him brilliant, but there is also a significant number who disagree,” says Brand Finance CEO David Haigh. “If you’re buying electric vehicles, Musk’s persona will likely influence your opinion on whether you want to buy one of his company’s cars, but it’s just one of many factors.”
According to Brand Finance, currently, the most valuable brand in the automotive industry is Toyota with a valuation of $64.7 billion, followed by Mercedes at $53 billion.
In this year’s ranking, Brand Finance analyzed responses from approximately 175,000 respondents, including about 16,000 people who shared their thoughts on Tesla — and they turned out to be very different from Wall Street ratings. According to the company’s report, Tesla’s automotive company indicators (on key parameters like “purchase consideration,” “reputation,” and “recommendation”) fell in some major markets.
The “consideration” rating (i.e., whether people would consider buying from the brand) for Tesla significantly dropped in Europe — from 21% to 16% on average from 2024 to 2025; however, in the USA the automaker still has a fairly high “reputation” score — 90%.
Haigh notes that the decrease in indicators and brand value of Tesla is a sign that “the company’s pulling power is weakening,” so there is a risk that it “will not be able to sell as many products at such high prices as before.” Recall that in 2024, Tesla saw its annual sales volume of electric vehicles decline for the first time in over a decade — to 1.79 million units.
Tesla’s brand strength index, according to Brand Finance, also decreased from 80 to 65 — a figure that shows how well the brand performs compared to competitors on intangible parameters.
“If Tesla cannot offer a range of new products that genuinely interest consumers, as well as somewhat reduce the ‘antagonism’ of its leader, it will be considered a brand that has peaked and is heading for a decline,” sums up Haigh.
Recall that last year Tesla’s stock price increased by 63%, in part thanks to Donald Trump’s presidential election victory, whom Elon Musk publicly and financially supported. The billionaire also took the position of the head of the efficiency department (DOGE) in the new administration.
Yesterday, during a speech, Trump supported Musk’s plans for colonizing Mars, but later in the evening signed a law that cancels incentives for electric vehicle manufacturers. Elon himself also spoke after the inauguration, but was mainly remembered for his strange gesture, which resembled a Nazi salute.
Evaluations of other brands associated with Elon Musk
Brand Finance also assessed other brands managed under Musk’s leadership, including the social network X (former Twitter), aerospace company SpaceX, and, for the first time, the satellite internet business Starlink.
- The brand value of X fell by 26% to $498 million compared to $673 million at the beginning of 2024 (before the company was acquired by Elon Musk in 2022 the brand value of Twitter was $5.7 billion). Of course, the main reason for the decline is the name change, but the report also mentions the loss of users and advertising revenue.
- The brand value of SpaceX increased by 11% to $3.8 billion (although Brand Finance began assessing the company at the beginning of 2024).
- The brand of Starlink is currently valued at $2.4 billion and is expected to grow with the acquisition of new users and increased revenue from monthly subscriptions.
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