This is how Elon Musk destroys Tesla’s image

He restricts his Starlink satellite network for Ukraine or fires Twitter employees because his tweets are too unpopular: Elon Musk’s antics have not only cost him a lot of money. But also a lot of compassion. And that could also become a problem for Tesla, according to a study commissioned by t-online.

There’s no question that Elon Musk does some unique things. He creates the most valuable automaker in the world. He revolutionized space travel. He accumulates a greater fortune than anyone before him. Or he destroys hundreds of billions of dollars.

Musk would have about $180 billion at his disposal, maybe $140 billion – the numbers vary quite a bit. Anyway, it’s more than enough. Until recently, however, it was even more. Musk is the first person ever to flop $200 billion. That’s the amount he lost – at least temporarily – in the past two years alone.

And some observers view this decline with concern. For example, investors who have invested many billions of dollars in Tesla stock and have had to watch their money burn for a long time.

In 2022 alone, the newspaper lost 65 percent in value. Since the beginning of the year, however, Tesla shares have started to rise again. The company’s stock market value is still well below its 2021 peak.

From the point of view of many experts, the problem has a name. It is precisely the name that has helped Tesla to its incredible rise in recent years: Elon Musk. Of course, many consider Musk a visionary, a facilitator or even a genius. Others paint a much more critical picture of the South African.

He is said to be giving right-wing extremists a platform. His own statements: part ‘disgusting and disconnected from reality’. And that says none other than a spokeswoman for the White House.

Such shots are aimed at Musk — not Tesla. On the other hand, who can make a difference?

Because hardly any other brand is as closely associated with a name as Tesla and Elon Musk. Those looking for similar examples think of Apple and Steve Jobs. Or Amazon and Jeff Bezos, Facebook (now Meta Platforms) and Mark Zuckerberg. In short: to tech companies and their creators, whose rise and innovative power even critics recognize.

But who knows the CEO of Honda or the head of Chrysler. Tesla and Musk are inseparable. The PR genius can sell panties and flamethrowers himself and is celebrated for doing so. The simple trick: where bad publicity threatened, he provided good. Nowadays it is increasingly the other way around. And this is the problem.

Experts such as Aswath Damodaran have long been critical of this close connection. The finance professor at New York University (US) warns Tesla: if you want to win back investors on the stock market, the company must detach itself from Musk’s personality. “Because they’re basically betting for or against Elon Musk.” Such a thing can be a good thing – as long as the personality is perceived positively. But public perception can also suddenly change

And that is exactly what has already happened. A study by research institute Civey commissioned by t-online shows: the Tesla image urgently needs a makeover. Only one in ten still loves the brand; 70 percent less. Or not. 70 percent also say Musk’s behavior harms Tesla.

Tesla fans won’t be put off by Musk’s antics. When Tesla recently cut prices sharply, sales went through the roof for a short time. People who used to be neutral about the Tesla brand should now look for alternatives more often.

And many Tesla customers have long regretted their purchase. If Musk continues like this, many more could follow. The man creates something unique.

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(t online)