Tesla’s stock and sales have been slipping, raising questions about CEO Elon Musk’s involvement in politics and online presence. As a vocal leader, Musk’s actions can impact the company’s ability to attract customers, employees, and investors.
Musk has dominated press coverage and social media attention since taking over the Trump administration’s Department of Government Efficiency (DOGE). Over 300,000 media stories have been written about him since January, with most focusing on his DOGE activities. This has led to a significant readership of over 387 million, mostly due to legal proceedings and budget cut recommendations.
The partisan divide regarding Tesla consumers is growing, with Republican favorability reaching an all-time high and Democratic favorability at an all-time low. This suggests Musk’s Trump ties are influencing consumer sentiment across party lines. A recent Morning Consult survey found that 49% of Americans have negative views of Musk, and 32% of U.S. buyers “would not consider” buying a Tesla.
While increased competition and macroeconomics may also be contributing to Tesla’s sales decline, the company’s brand reputation is heavily tied to its CEO. As communication expert Paul Argenti notes, a well-respected CEO can significantly influence how the company is perceived, but a single individual’s actions should not define the brand equity.
The big picture shows that CEOs are increasingly proactive about communication and sharing their company’s transformation stories. This can be crucial for individual CEOs leading corporate turnarounds, such as Brian Niccol at Starbucks and Kelly Ortberg at Boeing.
The current situation highlights the importance of strategic communications in shaping a CEO’s impact on their company’s success. While some may argue that Musk’s actions are driving consumer sentiment, others believe that a company’s brand equity should not be solely tied to one individual executive.
Source: https://www.axios.com/2025/02/27/tesla-stock-musk-doge-social-presence