Tesla (TSLA) brand value crashed 36% in 2025 — now worth less than half its 2023 peak

Tesla’s brand value collapsed by $15.4 billion in 2025, marking the third consecutive year of decline, according to new research from Brand Finance. The company’s recommendation score in the U.S. has plummeted to just 4.0 out of 10, down from 8.2 just over two years ago.

The numbers are brutal

Brand Finance‘s 2026 Global 500 ranking puts Tesla’s brand value at $27.61 billion, less than half of its $66.2 billion peak in January 2023. Here’s the trajectory:

• 2023: $66.2B (peak)
• 2024: $58.3B (-12%)
• 2025: $43.0B (-26%)
• 2026: $27.6B (-36%)

The research firm, which analyzes financials, licensing agreements, and comprehensive consumer surveys across 18 countries, found Tesla’s scores on “reputation, recommendation, trust, and coolness” all took a dive, especially in Europe and Canada.

Meanwhile, Tesla’s biggest rival is heading the opposite direction. BYD’s brand value jumped 23% to $17.29 billion. Five automakers now outrank Tesla in brand value: Toyota ($62.7B), Mercedes-Benz, Volkswagen, Porsche, and BMW.

What’s killing Tesla’s brand?

Brand Finance CEO David Haigh pointed to three factors: a lack of innovative new models, Tesla’s relatively high prices compared to competitors, and CEO Elon Musk’s “overreach” into geopolitics combined with his lack of focus on the auto business.

This tracks with what we’ve been reporting all year. Back in May, we covered how Tesla became the only EV brand with net negative perception, and much of that shift happened in just six months. We also reported on Tesla ranking below UnitedHealth, Temu, and BP in brand reputation polls.

The recommendation score collapse is particularly telling. A 4.0 out of 10 means American consumers actively won’t recommend Tesla to friends and family. That’s a catastrophic drop from 8.2 in 2023, when Tesla was still riding high on its EV dominance.

Musk’s political activities, from running DOGE in the Trump White House to endorsing far-right figures like Germany’s AfD and UK’s Tommy Robinson, sparked consumer backlash that persisted throughout 2025.

There’s one silver lining in the data: Tesla’s loyalty score actually increased from 90% to 92% in 2025, meaning existing owners are still willing to keep driving their cars. The problem is getting new customers in the door.

And here’s where things get strange. While consumers are fleeing the brand, Wall Street remains bullish. Tesla stock gained 11% in 2025, yet still below most indexes, hitting record highs in December on robotaxi hype, even as the company reported declining deliveries for both Q4 and the full year.

As we’ve noted before, Tesla’s brand damage also didn’t help used car values. Dealers report that “people don’t want them anymore.” The gap between Tesla’s stock price and its brand health is widening into a chasm.

Electrek’s Take

The writing has been on the wall for a while now. You can’t alienate half your potential customer base and expect it not to show up in the numbers eventually.

What makes this particularly damaging is that brand value, unlike stock price, is extremely hard to rebuild. Tesla spent years cultivating an image as the cool, innovative, environmentally-conscious choice. That goodwill took a decade to build and apparently two years to destroy.

The 4.0 recommendation score is the stat that should terrify Tesla investors. Word of mouth is how Tesla built its brand in the first place, no advertising, just satisfied customers telling their friends. Now those same customers won’t recommend the product.

And here’s the thing: the cars haven’t gotten worse. The Model 3 and Model Y are still solid EVs. But brand perception increasingly has nothing to do with the product and everything to do with the overall brand, which is led by a toxic CEO. That’s a problem that can’t be fixed with a software update.

Tesla reports Q4 earnings today. Don’t expect anyone to ask about brand value on the call, but maybe they should.