According to a Brand Finance report, Tesla’s brand value dropped by approximately $15 billion in 2024, marking a 26% decline from the previous year. This brings its total brand worth to $43 billion, placing it behind top automotive brands like Toyota and Mercedes-Benz. The decline stems from an aging electric vehicle lineup, rising EV competition, and Elon Musk’s controversial public image, which has impacted consumer trust and brand perception.

With Tesla stock trends, EV market competition, and luxury electric cars evolving, Tesla’s vehicle innovation has slowed, causing stagnation in global sales growth, including in key markets like the UK, where sales increased by only 1.5% in 2024. Meanwhile, rivals like BYD electric vehicles have surged ahead, surpassing Tesla in global EV sales.
Additionally, Elon Musk’s political views and public behavior have sparked controversy, leading some Tesla owners to reconsider their EV purchase decisions. Surveys suggest that a portion of customers are selling their Tesla cars due to concerns over the brand’s future sustainability and reputation management. As the electric car industry becomes more competitive and Tesla faces brand scrutiny, the company must innovate to maintain its market dominance and brand credibility.