Tesla’s Brand Crisis Calls for Leadership Change

Tesla’s sales are declining, and protests against CEO Elon Musk have taken place across the country. A brand consultant suggests that the best way to rebuild Tesla’s reputation is for Musk to step down as CEO. According to Allen Adamson, a branding expert, Musk’s lack of focus on innovation and his increasing involvement in politics are major contributors to the company’s struggles.

Musk currently heads the Department of Government Efficiency (DOGE), which has been making aggressive cuts across government. However, experts argue that this role is not essential to Tesla’s success. The brand consultant points out that there have been no notable examples of a CEO’s public statements or actions directly affecting car sales in the past.

The issue at hand goes beyond Musk’s DOGE role and encompasses various factors such as his Cybertruck recall and recent controversies. Adamson explains that cars are “badge brands” that convey an identity signal, making it crucial for Tesla to maintain a positive brand image. The consultant believes that if Musk were to divest from the company and sell his stock, it would be the easiest fix for the brand.

Ultimately, Adamson emphasizes the importance of focus for any CEO, particularly in the car industry where customers are highly sensitive to perceived quality and reliability. By stepping down as CEO, Tesla could regain its footing and attract a new ownership team focused on innovation and customer satisfaction.

Source: https://www.npr.org/2025/03/31/nx-s1-5339818/tesla-brand-elon-musk