economy
January 27, 2026
Tesla lost $15 billion in brand value in 2025 as Musk stepped deeper into politics, research shows
Tesla's brand value declined while BYD's surged last year, according to research by Brand Finance
TL;DR
- Tesla's brand value decreased by $15.4 billion (36%) in 2025, its third consecutive annual decline.
- Lack of new models, high prices, and Elon Musk's geopolitical overreach are cited as reasons for the decline.
- Tesla's brand value now stands at an estimated $27.61 billion, down from $43 billion at the start of 2025.
- Consumer scores for reputation, recommendation, and trust in Tesla significantly dropped, particularly in Europe and Canada.
- Tesla's U.S. recommendation score hit a low of 4.0 out of 10.
- Despite the brand value drop, Tesla's customer loyalty score in the U.S. rose to 92%.
- BYD, Tesla's main rival in China, saw its brand value increase by approximately 23%.
- Toyota, Mercedes-Benz, Volkswagen, and Porsche all outranked Tesla in brand value.
- Musk's association with Donald Trump's administration and endorsements of far-right figures contributed to a consumer backlash.
- The loss of a federal EV tax credit in the U.S. presented another business challenge.
- Tesla's share price recovered in the latter half of 2025 after launching a ride-hailing app and pilot Robotaxi service.
- Musk supported Tesla's share price by purchasing approximately $1 billion in stock.
- News of testing 'automated driving systems' without occupants boosted Tesla's share price in December.
- Starlink, a sub-brand of SpaceX, entered the Brand Finance top 500 rankings with a value of $5.19 billion, but it's unlikely to impact Tesla's valuation.
- Tesla is preparing to discuss its fourth-quarter financial results and future plans in an upcoming earnings call.
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