US marketing professor Scott Galloway has labeled Elon Musk’s decision to implement drastic job and spending cuts within the federal government as one of the “greatest brand destructions” ever. Galloway, a co-host on the popular Pivot podcast, made the comments after Tesla’s sales plummeted in several European countries.
Tesla’s sales have fallen by 59% in France, 81% in Sweden, and 74% in the Netherlands, among other countries. The decline is attributed to Musk’s involvement with the “department of government efficiency” (Doge) during Trump’s presidency. Galloway stated that Musk has alienated Tesla’s core demographic, including three-quarters of Republicans who are not interested in electric vehicles.
Musk had attempted to intervene in European politics, which may have led to backlash from EU countries. This move has allowed Tesla’s Chinese competitor BYD to surpass Tesla in the European market for the first time ever.
Galloway believes Musk’s actions have damaged his brand significantly, citing a 71% dip in profits and criticism from voters about Musk’s handling of federal government employees. Musk plans to reduce his involvement with Doge starting in May, but estimates suggest that $160bn in cuts could cost around $135bn.
As the situation unfolds, it remains to be seen how Tesla will recover from this damage, and whether Musk’s efforts to implement cost-cutting measures will ultimately benefit the company or harm its reputation.
Source: https://www.theguardian.com/technology/2025/may/24/elon-musk-doge-scott-galloway