Brands that are closely tied to public figures are tricky. If a public figure does something that changes the public’s perception of them, be it positive or negative, perception of their brand often follows. This looks to be the case for Tesla: Elon Musk has become a polarizing figure given his role in President Donald Trump’s administration and it looks like the ripple effects of that polarization are affecting the Tesla brand.
On Wednesday, Tesla’s first-quarter results showed a 13% drop in vehicle deliveries year over year, with the carmaker delivering almost 337,000 cars, down from roughly 387,000 cars during the same time period last year. While Tesla stock reportedly hit its “worst performance for any period since 2022” earlier this week, the stock has since rebounded following reports that Musk might be leaving his role in the government.
With that said, signs do point to brand sentiment dipping for Tesla. As of this week, some 15% of U.S. adults were considering purchasing a Tesla, down from 20% the week of March 24-30, according to data from Morning Consult. The data firm also noted that “negative buzz” around the brand has been growing since the first week of January, when 25% of respondents to a survey said they had heard or read mainly negative things about Tesla, to now, when 42% said the same.
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