US marketing professor Scott Galloway warned that Elon Musk’s role in driving spending cuts in the federal government for the Trump administration has been “one of the greatest brand destructions,” pointing towards Tesla.
Speaking on Friday’s episode of the Pivot podcast, which he co-hosts, Galloway said Musk had alienated Tesla’s customers, one of his most important assets, by backing a president whose supporters show little interest in electric cars and the broader shift to clean transport.
He then pointed to polls that showed Tesla was the 8th most reputable brand in 2021, but it has now fallen to 95th.
“He’s alienated the wrong people,” Galloway said. “Three-quarters of Republicans would never consider buying an EV. So he’s cozied up to the people who aren’t interested in EVs.”
Galloway went on to list sharp drops in Tesla’s sales across Europe last year, down 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland and 33% in Portugal.
Musk’s political interference drove away key European EV buyers
In recent months, Musk has tried to influence several European political debates, particularly via posts on X.
The Guardian reports his interference turned off many European customers, which is a key market for electric vehicles. Moreover, in April, China’s BYD outsold Tesla in Europe for the first time, according to Jato Dynamics, an automotive market intelligence firm.
“This has arguably been one of the greatest brand destructions,” Galloway told co-host Kara Swisher. He added, “Tesla was a great brand. He’s alienated his core demographic.”
The federal job and spending cuts trace back to Musk’s leadership of the so-called Department of Government Efficiency, or DOGE, under Trump’s second term, which began in January. Musk secured that position after his super PAC donated $200 million to Trump’s successful November campaign to return to the White House following his 2020 defeat.
Since then, opinion polls have shown widespread disapproval of Musk’s work for Trump. Some studies indicate that a majority of voters dislike how he and DOGE treated federal employees as the department worked through large job reductions.
By late April, Tesla reported a 71% drop in profits. On an earnings call with investors, Musk said he would start stepping back from DOGE in May.
He told shareholders that the job of getting the government’s “financial house in order is mostly done” and that his “time allocation to DOGE will drop significantly.”
Although DOGE claimed it would cut about $160 billion in spending, CBS News reported that Partnership for Public Service estimated in late April that actually carrying out those cuts would itself cost around $135 billion,
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