Tesla's once-stellar reputation is running out of juice
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Tesla Motors' brand reputation continued to slip over the last year as the antics of polarizing CEO Elon Musk and other issues tarnished its once-impeccable image, according to new Axios Harris Poll 100 survey results.
Why it matters: Tesla soared to 8th place in 2021's ranking of America's 100 most visible companies by their perceived image, but has since plummeted to 63rd — suggesting Musk and his company flew too high and too fast, like Icarus of Greek myth.
Zoom in: In the 2024 Axios Harris Poll 100, Tesla ranks in the 70s or below on attributes like character, trust and ethics.
- It ranks higher on factors like growth (48th), vision (34th) and products & services (32nd).
- But those rankings are far below its standing just three years ago, when Tesla ranked in the top 10 on all three attributes.
Context: Tesla's reputation has slid behind those of other conventional automakers.
- Honda (7th), Toyota (12th), Subaru (15th), General Motors (40th) and Ford (55th) now all rank higher than Tesla (63rd).
- Only Volkswagen (69th) ranks lower.
The big picture: Tesla has long been defined by its CEO, who captivated consumers and investors with his vision to promote stylish, high-performance electric cars as a way to tackle climate change.
- But his messy takeover of Twitter, and increasingly controversial political rants on the platform — now called X — have alienated some one-time believers.
- Some Tesla owners even put bumper stickers on their cars declaring, "I bought this before Elon went crazy."
Between the lines: At many companies, communications specialists are available to smooth over the boss's miscues.
- But Musk famously dismantled Tesla's public relations department a few years ago, and now handles his own PR via X.
What's next: Tesla faces an array of business and legal challenges that will continue threatening its reputation.
- It's under increasing pressure from competitors, especially up-and-coming Chinese EV makers.
- In response, Tesla is slashing car prices and cutting 10% of its workforce, even while the UAW mounts a union organizing drive.
- Meanwhile, federal safety regulators say Tesla's Autopilot assisted-driving technology was responsible for 467 crashes and 14 deaths over about 15 months during 2022-23.
- Tesla cars have also been plagued by quality issues, including steering and suspension failures.
Reality check: Despite the company's reputational hit, Tesla has by far the most loyal buyers of any automaker, according to S&P Global Mobility.
- Nearly 70% of Tesla-owning households looking to buy a car in the first quarter of 2024 purchased another Tesla, per S&P data.
- Most other brands have a loyalty rate around 50%.
The bottom line: For some buyers, it's about the car — not the company or its CEO.
Go deeper: Read the full methodology behind the Axios Harris Poll 100.
