Tesla Brand – Recent Survey Shows Potential Damage (Ep. 711)

Do you concur or disagree with Morning Consult that Tesla's brand name web favorability has decreased this past year?

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Tesla Brand – Recent Survey Shows Potential Damage (Ep. 711)

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57 Comments

  1. I see a a small pool of people, who are active online, stating they are not happy with Tesla/Musk. I also see huge demand from the recent price drops. I have also seen a lot of people over the years threaten to leave the US when Bush or Trump were elected, and then didn’t. People say a lot of things, due to their emotions in the short term. We won’t really know any thing solid until Q3 2023 and for now it looks like demand is going to be solid. For now, I am not selling and am looking forward to the annual meeting. I will continue to reassess as new data comes in.

    1. @ken 1 They don’t hate Tesla. They hate the person Elon has either become, or revealed himself to be. How anyone can stomach the current Q-Elon, I can’t understand.

    2. @Big Daddy I am calling how it is. You don’t think there are those who are loud mouth then? Are we supposed to PC on youtube?

    3. I have one of those weirdo blue hair colleagues at work. She stopped paying for her Tesla because it’s financed by Tesla. She doesn’t want to pay for it because it doesn’t fit her political agenda.

  2. I have questions.
    Did someone commission this survey or is Morning consult doing a freebee?
    Are the people in the down on Tesla brand group likely Tesla buyers?
    Is there correlation between this survey and actual Tesla sales even though such correlation is not necessarily causation?

    1. No need to check, just read the comments and talk with a few people. I’ve see this first hand just buy talking to the same group of people over the past year. Tesla hate is way up.

  3. I believe the product will drive the brand. People may say they are going to buy an inferior product due to politics but actually doing it is something else. The sales of TSLA’s compared to other brands is the true data. Did people keep buying blackberries when iPhone came out, no. There is virtually no demand for Chevy bolt because it’s junk. GM will eventuality stop making products that lose money… just my thoughts.

    1. @Rath so Elon is incredibly careful about what he says in China because it’s an important market for Tesla’s cars. You will never hear him say a bad thing about the CCP. I just wish he’d do the same for the rest of the world!

    2. The manner in which the Twitter deal was done, is a story of unforced error after unforced error. People absolutely will buy inferior products for decades, and even generations. Look at almost everything Detroit has produced over the last 50 years. Even with higher quality products available, people still buy that junk, in the hundreds of millions.

    3. Tesla trend has popped. It’s not “the cool car” any longer. It’s become a political car that is built by a man that sold more shares in 2022 than retail bought. He rug pulled his loyal subjects so hard. Rip.

  4. Dave, given all the time aned effort you’ve put into investing in a s well as researching Tesla I would think you’re mor than capable of determining if they are a valid research organisation, or not. If they are then the question is what can Tesla and Elon do to reverse people’s feelings.

  5. Sales are still setting records …. as long as Elon continues to go back to his emphasis on the positives of this tech for the world and the hope it implies for a brighter future … then this wave shall pass … focus on hope and don’t get tempted to be sucked into negativity of political stuff … that is like falling into a black hole from which it difficult to recover … all his data and tech stuff I think brings hope for a good/better future – engineers are supposed to be problem solvers not the opposite … focus on hope … that will help energize people …

    1. That be nice, but he’s not doing it. Instead, he’s supporting, liking, and retweeting far right wing conspirators. Propping Right wingers who are the last to buy EV’s, and alienating the left who buys the most EVs. Dumb…

    2. @Big Daddy that’s nonsense. Twitter was super leftist, now you simply can say things again that aren’t of your opinion. Right opinions have a right to be heard such as the left opinions. That’s democracy.

    3. He’s too busy messing with Twitter and telling Americans to vote Republican. The brand is trash now. And there’s no governance to reign him in. S&P was right

  6. I was tesla mad but recently something changed. I am no longer thinking I will buy a Tesla- the magic has left the building- this makes me melancholy! I had a man crush on Elon but as he started to sell shares, we the shareholder’s paid the Twitter price. This is a serous mess relating to the emotional aspects of buying a Tesla- Elon’s brain is not wired to understand this.

  7. Thanks, Dave. This is the first formalized data in this area I’ve seen. Unfortunately, it validates my own anecdotally obtained conclusions. The whole twiiter escapade has done real, and, I believe, lasting damage to Tesla. Further, I fear it has damaged the whole of EV transition. Would be interesting to see real data relative to the broader EV and related energy transition effort.

    1. I actually think it was a pro move by Elon. He knows he can get liberals back into buying Teslas just by using the climate change card. How do you get conservatives to buy Teslas? By buying Twitter and trashing liberals of course… long term this will be a win for Tesla. Just my hypothesis. Who knows? Only elon.

  8. What is the brand favorability score for Philip Morris, ExxonMobil, Pfizer, or Lockheed from this market intelligence firm? Are they trending upward or downwards?

    Context is necessary. Overall, I suspect Tesla’s brand challenges began with the new Administration coming into office and rewriting the history of EV adoption, aka “you led mary.”

    The damage IMO is within the Tesla Community and I suspect there is little change in the overall consumers. There was a time when the Tesla community pushed back against the negative narratives, but today there are more and more who push the negative narratives from within and they appear to have supporters. My suspicion is that the Tesla community has all but collapsed as we’ve known it.

    1. The “Tesla community” is still here. Elon left to try to get republicans to take over the country (explicitly) and make Twitter safe for Nazis and child molesters, while making clear how much he despises each and every Twitter employee. Where have you been, in a cave?

    2. Biden doing an event with Mary Barra has no effect. How do I know? Because nobody outside of Tesla fans has any awareness of that event. If you quizzed a thousand Americans I bet you’d find a couple dozen people have some knowledge or memory of the event and 95% of those people are Tesla fans/investors who aren’t influenced by it at all.

      Elon’s repeated, badly informed covid takes seemed to mark a turning point among my peers. That’s when opinions went from “Elon’s kind of annoying, I’m not sure about him” to “Elon’s an a**hole.” In the midst of a pandemic that threatens friends and family, people really don’t like it when influential people spread misinformation and refuse to ever take responsibility or post corrections.

      Elon going from free speech champion to “I will ban whichever Twitter behaviors I don’t like” in a matter of a few months also didn’t win him any respect. Note the recent declines among both Rs and Ds.

      Other factors affecting Tesla net favorability might include the stock price itself. Frustrated investors. And even among non-investors, people like winners better than losers.

      The Morning Consult poll ostensibly measures opinions of Tesla but I assume it’s really measuring opinions of Elon to a large extent. Other factors could include Tesla not fulfilling FSD promises, Tesla raising prices on vehicles, etc.

    3. @Ryan The Mary comment is an example. Does Biden’s EV tax credit have an impact? Does his unconditional support of UAW or his recent inclusion of non-USA made EVs into the tax credit have an impact.

      This administration is a net negative for Tesla as a business, that was my point.

  9. Dave, I love you videos but it is not the responsibility of Tesla or it’s BOD to prove it’s brand has not been damaged. If anything we need corroborating data from elsewhere to verify if Morning Consult survey/pool is accurate. To me the most accurate indicator of brand damage is the production, delivery, revenue, profit and growth numbers from Tesla.

  10. I bought a Tesla Model Y less than a month ago after being a Tesla investor for the past few years. I agree with Chemath Palhapitiyas comment that once you sit in a Tesla your expectations are forever changed as it redefines what you expect when buying a new vehicle. Since buying a Tesla I feel I have access to another TV, another Computer not to mention I save a ton of money on not buying gas, I feel good about no longer polluting the environment not to mention supporting a company with largely American made parts.

    I used to own a Mercedes and the Tesla is superior in so many ways. Now that the Tesla prices have been reduced combined with the Tax Credits buying a Tesla today is a no brainer…

    1. I feel the same – if you add solar-power – as we it feels even better: Driving on sun-shine : ) Pretty cool. Also, Considering that a Tesla is built to last 2-3x LONGER than an ICE, the savings over time will be way bigger than most realize.

    2. That electricity you are using comes from burned coal. How are you not polluting? Those batteries will die and end up in a landfill. The factories that made your batteries required mining to gather raw materials. Mining requires chemicals, explosives, etc. that car wasn’t made by unicorns and it doesn’t run on magic fairy dust.

  11. Thanks for the video Dave. Unfortunately, I have a small sample size of direct evidence of brand damage when I consider the new negative opinions of Elon and Tesla by many of my friends. These friends are people in the exact demographic that would potentially buy a Tesla but are now “never Elon or any of his products.” They are totally disgusted by him regardless of the many wonderful things he has done in engineering and for the world (help in Puerto Rico, Starlink in the Ukrane, medical equipment during COVID, etc.). While Thier negative attitude may not be a rational response or approach to the purchase of a new automobile it is a guttural response to his comments and his purchase of Twitter. As a proud Tesla owner and a stockholder with a significant portion of my portfolio in Tesla, I am frustrated and saddened by what has happened to the brand. I feel I have been put in the unenviable position of having to defend Elon’s comments to my friends. While his comments certainly are his own (and Twitter is a private company where he can obviously express whatever he wants), they have an impact on Tesla and I still wish for the company to succeed, not just for my own selfish financial interests, but for the good of America and the planet. Frustrated in Austin.

    1. Hopefully they’ll keep getting their boosters and this ignorant, opinionated simpletons with woke mindset problem will be self-correcting.

    2. @jinny No one cares what they think? Excuse me Jinny, but I care what my “small sample size 50’s plus ” (actually we are a group of 60’s plus, not that our age should matter anyway) friends think. But hey, like you, I am hopeful that things will blow over and that Tesla sells many cars and the stock recovers. None of that however, changes the fact (given the survey and my own silly small sample size of friends) that Elon, as the most visible representative of Tesla, has alienated a most likely large sample size (of all age groups) of potential customers.

    3. @Johan Nel Oh I agree with your comment and that always is part of my defense of Tesla/Twitter. If we can only buy/use products from the brands that have CEO’s that we know we politically agree with our choices may become narrow.

    4. Well your friends are short sited. People like them is why the world is in a state it is. Really they need to grow up.

    5. Very well said. Same experience here.

      I want to add that in Europe the situation is probably worse as there are very (and I mean VERY) few here that are supportive of Republicans openly supported by Elon (e.g. DeSantis). Only loss here, no win.

      Around my friends I hardly meet anybody who does not (even without Tesla being discussed) mention how they now see Elon as negative, unprofessional, unhinged and even childish and revengeful. Some even say they see him as an awful human being.
      Certainly that last is undeserved and based on fud / lies, but Elon is making it his many enemies very easy.

  12. Tesla’s high inventory was significantly reduced by ~50% in two days after the big price cuts . Before stock market open on Tuesday, hopefully Tesla team reports promising inventory data so that this bad news won’t hammer $TSLA stock again.
    For the long-term, Tesla’s new guy Tom Zhu takes the leadership for Sales & Marketing roles from ELON so that ELON can be more focused on the innovative technology and product developments such as FSD L4 release, $25K car development, Robot taxi and humanoid Robot developments.

  13. Thanks Dave for asking the questions. First thing that popped into mind was”who is paying for this survey?”
    The payee affects the results
    I do think as investors that the company should be monitoring this situation with data of their own. As other indicated Tesla has likely has had some brand damage but not everyone acts on their first emotion. But at some point it will have an effect on sales. People choose their products for variety of reasons and best product is not always at the top of the list.

  14. Though anecdotal, the poll reflects what I’m hearing from my friends in Boston, a relatively liberal city. It would be so much easier and better for Tesla and investors if Elon could just be more diplomatic but, alas, “a tiger doesn’t change his stripes”. Gotta take the bad with the good. As an investor, I have to consider Elon’s insistence on making inflammatory Tweets as another risk to holding TSLA.

    1. @Matt Casters it’s not my bias. I’m an unenrolled, aka “independent”, voter. I vote for candidates from both major parties.

    2. @Lars Lysdahl Sure we care here in europa!We hate this lieing bastard and fake genius!If you want that people lauhing about you,drive a Tesla!

    3. @Matt Casters It’s not my bias, it’s my observation. Don’t shoot the messenger. I’m not a Democrat. Most of my friends are more left than I.

    4. @David Kasman yes I understood that. The last sentence in my comment still stands though since your premise seems to be that liberals would be more likely to buy an EV.

  15. I feel much of the good will directed towards Tesla and it’s mission, built up over many years, has been significantly eroded over the last year. From my own experience during numerous conversations (where I have remained quiet about being a Tesla investor and Model Y LR owner), much of the talk is negative about Tesla but more significantly around Elon Musk personally – his Twitter acquisition and polarizing political views. Further, a good friend recently revealed that he had sold his Tesla stock solely because he was fed up with Elon. Agree with this or not, there can be little doubt that there has been a real negative effect on Tesla’s brand and by extension the stock.

  16. Tesla definitely has suffered brand damage and I believe the survey is pretty accurate. 100% of the damage is caused solely by Elon’s own doing and the failure of the Tesla board to mitigate/help. Everything trickles downward. Young people who have been salivating over their dream of owning a Tesla will now see those who they look up to shine with something other than a Tesla since these once OG fans have lost their trust and faith in Elon, who is synonymous with Tesla.

  17. It is rather obvious to me that Tesla’s brand had been damaged – mainly due to the damage that Elon has done to his own image and Tesla’s image is, for better or worse, tied very closely to Elon.

    It is sad that this has happened. Tesla makes some amazing cars and electric energy products but it also has been a very much aspirational company with much of its aspiration being brought to the public via Elon Musk. This means that when confidence in Elon’s abilities and rational thought falters, so does that of Tesla.

    Until the Twitter situation, a lot of people were of the stance that Elon is a bit out there but very smart and is pushing the technology envelope. The Twitter thing has shown him to not be as smart and to be rather slanted in his political views which has clearly had a negative impact.

    How can Tesla undo this? It is unclear. They are tied to Elon and getting rid of him would not be a good move (at least short term) but yet he has become a bit of a sore spot. The best would be if Elon got back to being an engineer and CEO and stopped with his Twitter games and political antics.

  18. This was an easily avoided error on Elon’s part. For a guy who’s supposedly a genius (and I think he is), it turns out that when you start trolling the Libs, who from the very beginning were your strongest supporters (electric cars and all), it ain’t a good strategy! Gee, whoda thought? Was California really THAT bad to ya, Elon? Now your strongest supporters are in the party that still thinks climate change is a hoax. Good luck getting them into your product, boy wonder! The only thing Tesla has going for it now is the competition – who are still too stupid to invest in a nationwide fast-charging network. So, the good news is that the only thing that can still tank Tesla is Elon Musk’s big mouth on Twitter. Unfortunately, that’s also the bad news! Newsflash to Elon: stop ridiculing your base of supporters. This sound advice is coming from a Tesla retail shareholder since early 2013, and Tesla Model S owner since early 2014. I’ve had to live through the “Pedo Guy” tweet, the Joe Rogan podcast, the “Funding Secured” tweet, the “I’m only voting Republican” tweet, the “Indict Fauci” tweet and on, and on, and on. It’s getting hard to love Tesla anymore with this never-ending onslaught of BS. Please, in the name of God, CAN IT, ELON!!!

  19. Your asking questions and putting forward carefully thought out issues that a Tesla independent director should be asking. And your doing it sensitively, objectively and effectively. I appreciate your representation of these issues Dave.

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