The Latest Worst Branding and Marketing Fail of All Time

Recently, we’ve seen another company submit its entry in the “Worst Branding Fails of All Time” awards. Yes, I’m talking about Tesla. (And no, I’m not taking a political side in this post)

The statistics are staggering. As of the hour this was published:

• Tesla’s stock is down 34% in the last month, and 50.3% since its trading peak on Dec. 17, 2024.

• Based on current stock value, Tesla has lost about $750 billion in market value since that trading peak.

• Elon Musk, who owns about 13 percent of Tesla’s total stock, has lost just under $100 billion from Tesla stock value alone in the last three months. Valuations of his other businesses have gone up, but that’s still a massive hit to his portfolio.

More than anything else, this massive drop can be attributed to Musk aligning with President Donald Trump and assuming a major role in his administration. All politics aside, it’s a brand/marketing/communications fail of the highest order. Here’s why.

Tesla built its name and reputation on being technologically forward and environmentally conscious. It was the coolest brand out there for people who wanted to drive more efficiently, do good for society, minimize their carbon footprint, help humanity transition to a new modern era, etc. Put another way, Tesla became successful because of people who mostly leaned to the left of the political spectrum.

Yet Musk has aligned himself with Trump and the right. Or the far right, to be more exact. Trump’s (legally and ethically perilous) infomercial for Tesla on the South Lawn of the White House last week only underscored the relationship.

In aligning with Trump and doing what he is, Musk is pushing an agenda that directly contradicts what Tesla’s brand essence has always been. The result: he is confusing the people who own and were most likely to buy a Tesla about what the company stands for, and in many cases turning them off or making them feel conflicted about owning and driving a Tesla. What’s more: to try to stem his losses and turn around his struggling company, he and Trump are now asking the people who have traditionally been most at odds with Tesla’s brand to buy its cars. It’s an incredibly tough sell, to say the least.

Brands are living, breathing things. Organizations are wise to work hard to clearly define and build equity in them. They also are wise to be consistent in their brand attributes and voices, so that consumers aren’t confused or hesitant about them. When consumers lose their confidence, they take their dollars elsewhere and they don’t come back.

At this point, any outside observer could have legitimate questions about what Tesla is and what it stands for, to say nothing about the future viability of the company. Long-time supporters are questioning their support of Tesla, if not altogether withdrawing it. All of it is a brand and marketing nightmare.

This is why I’m incredibly bearish about Tesla at this point. I can’t see Tesla’s traditional market continuing to invest in the company as it has, and I don’t expect newer target market segments who have barely supported electric vehicles to offset those losses and then some.

If you’re Tesla, you’re going through a world of hurt. Maybe Musk thinks he’s doing what’s best for himself, but what he’s caused at Tesla…if that isn’t a corporate branding and marketing fail, I don’t know what is.