Tesla Brand Image Plunges Amidst Regulatory Questions & Competitors’ Rising Approval Ratings
Electric vehicles are transformational, and the Tesla brand steered a new era in automobile manufacturing around the world. Today, though, questions about the all-electric carmaker’s current viability loom heavily.
It’s starting to become clear that Tesla has lost its appeal as a relevant pioneer — now it’s an isolated anti-woke icon. There have been bumper stickers distancing Tesla owners from CEO Elon Musk and reports of graffiti at Tesla showrooms. In fact, Tesla is the only brand where negative automaker views exceed 15% and distrust exceeds 30% among consumers of any partisan affiliation.
- Tesla now holds a net favorability score of -7%, with 39% of US residents reporting a negative view of the brand.
- Only 32% of people in the US have a positive impression of Tesla.
- 55% say they either would never consider or are not likely to consider buying a Tesla; a minority 44% say they are open to or currently considering it.
- Musk’s role in the Trump administration has created a majority negative customer perspective among Democrats and Independents.
A huge malaise fell upon Tesla owners when they learned that the Department of Government InEfficiency (DOGE) supported the removal of USAID, the Social Security Administration, and Health and Human Services workers — usually without cause but with exaggerated and unsupported claims.
The DOGE devastation has ripped apart the main science division of the US Environmental Protection Agency (EPA) — the agency is nearly shuttered. “They have basically shut ORD down by cutting off the money,” Jennifer Orme-Zavaleta, who served as principal deputy assistant administrator at the Office of Research and Development (ORD) during the first Trump administration, told Nature. The situation at the EPA is among the most pronounced examples of Musk’s approach that is stifling activities across several US federal agencies, including the National Oceanic and Atmospheric Administration (NOAA).
But, wait, you say; it’s not all bad. Tesla shares have risen in value this week, buoyed by the Trump administration’s flip-flopping over China tariffs. The price at end of close Friday was $349. But not so fast — experts are suggesting that the tempting rally may, actually, prove to be a prudent time to sell the spike. It’s important to remember that Tesla vehicle deliveries in Q1 declined by 13% to 336,681 units.
Yahoo! Finance notes that TSLA stock is still down more than 8% year to date, with mostly volatile trading as a result of the company’s declining sales. The plunge is largely attributed to polarizing actions from CEO Elon Musk. As Musk retreats from his formal position as head of the DOGE, it seems as if he isn’t posting political diatribes on his social media space, X, right now. Then again, Trump’s first overseas tour since returning to power has made Musk highly visible — just as he’s promised to switch focus and attend to Tesla’s needs.
Competition Used to be the Fuel that Ignited Innovation at Tesla
Following another year of robust growth, global sales of electric cars are on track to surpass 20 million in 2025, accounting for over a quarter of cars sold worldwide, according to the the IEA’s annual Global EV Outlook.
What’s happening to cause the upward trend? Electric models are becoming increasingly affordable. Even if oil prices were to fall as low as $40 per barrel, running an electric car in Europe via home charging would still cost about half as much as running a conventional car at today’s residential electricity prices.
Globally, electric truck sales increased by around 80% last year, accounting for close to 2% of all truck sales worldwide.
“Our data shows that, despite significant uncertainties, electric cars remain on a strong growth trajectory globally. Sales continue to set new records, with major implications for the international auto industry,” said IEA Executive Director Fatih Birol. “This year, we expect more than one in four cars sold worldwide to be electric, with growth accelerating in many emerging economies. By the end of this decade, it is set to be more than two in five cars as EVs become increasingly affordable.”
In the US, electric car sales grew by about 10% year on year, reaching more than one in ten cars sold. Rivals have unveiled more affordable and aesthetically appealing models than the stagnant Tesla catalog. Tesla’s collapse in image coincides with Chinese manufacturer BYD’s rise — which delivered 416,388 electric vehicles in Q1 2025 and currently holds the lead in global EV sales.
Meanwhile, as a Tesla owner, I received a posting of the most recent Tesla brand campaign in tonight’s email. “To thank our heroes, we are offering $1,000 off any new Model S, Model 3, Model X, Model Y and Cybertruck for military members, first responders, teachers, and students.” Basically — anybody? Anybody who’s been screwed by the Trump administration? C’mon down. It’s the best the company can come up with right now.
Federal Regulators Want Answers to Robotaxi Questions
Investor confidence in Tesla has all along been tied to believing in a vision. It’s risk–reward behavior, with Musk constantly symbolic of the promise of Tesla. So it was no surprise that Musk bragged about the Optimus Humanoid robot during the Saudi trip — mostly hype, still an R&D dream.
He also imagined for audiences what the robotaxi can provide for safety, convenience, reduced congestion — and investments. The company has continued to uphold its claims that it is getting ready for a pivotal Robotaxi launch in Austin next month. However, the reality is that Tesla has not actually conducted any driverless ride tests. Federal regulators have pushed Tesla to outline how its robotaxis will operate safely in challenging conditions such as fog, sun glare, rain, and other low-visibility situations. Those weather situations have been cited because the company’s driver assistance software experienced previous difficulty in such cases and some accidents.
Final Thoughts about the Tesla Brand
Slowly, US automotive manufacturers are caught having to prove that they can compete in the EV race — but the backdrop of the Trump administration rejecting the whole notion of transportation electrification makes it tough.
How will Tesla and other US EV automakers fare if the Republicans have their way and do delete the $7,500 tax credit for buyers of new electric vehicles and a $4,000 credit that can be applied to the purchase of used electric cars and trucks? (I took advantage of the used EV credit— it made the purchase much more appealing.) That’s on top of the current reality that automakers are already confronting higher costs because of Trump’s 25% tariffs on imported cars and auto parts.
US battery plants, too, are in jeopardy if the Republican proposal is enacted, as it would also put new restrictions on other tax breaks that have encouraged automakers to invest tens of billions of dollars in new battery plants in the US.
Yes, Tesla may see a momentary surge in sales if consumers fear loss of the tax credit. But can the company sustain such fleeting momentum? It will take a miracle. Elon, what kind of magic do you have up your sleeve this time?
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