It’s always personal with values-based brands. Just ask Tesla

This article was originally published on MediaWeek.

In the United States, the same people who once championed Tesla are now selling their cars at a loss, walking away from dealerships, and questioning whether they still want such a significant purchase to reflect Elon Musk’s personal brand.

The numbers tell the story: Tesla's resale values in America have dropped 10% since August and its market capitalisation has fallen by almost half in a matter of months. In Australia, Tesla’s February sales were down 71% compared to February 2024, according to data from the Electric Vehicle Council.  Around the world, loyalty to the Tesla brand is eroding fast.

Consumers don’t just buy on price or performance—they buy on values. 

But when they think a company’s values have shifted, or decide that they were fake to begin with, the consequences are real.

Perception is reality in brand loyalty

Brands don’t operate in isolation. They live in a world that interacts with the public’s own perceptions and values. And unlike most product lines, those values often come in bundles that cut across many aspects of life and culture. Some are deeply held and hard to separate. 

Brands that can tap deeply held values, whether they’re about sustainability, fairness, or even just authenticity, can do very well indeed. They often command stronger loyalty and premium pricing. Patagonia’s steadfast commitment to environmental activism has earned it a cult following. Even Nike’s bold (and controversial) Kaepernick campaign worked because it resonated deeply with its audience.

But values aren’t just a marketing play. When they shift, or when customers feel abandoned, the backlash can be brutal. Cross the lines and you’ll be punished, because when you offend people’s own values, suddenly it’s very personal. 

Tesla’s changing symbolism

Since it was acquired by Elon Musk, Tesla has been associated with technology, speed, disruption and the push for greener energy and transport. Spearheaded by a charismatic CEO, it was charging in headlong to challenge the traditional, fossil-fueled motor industry. 

Indeed, Tesla still proudly says it is “accelerating the world’s transition to sustainable energy”.

It was a vision that many bought into. Until relatively recently, owning a Tesla signalled something about the buyer: that they cared about the potential of technology to solve some of the world’s most pressing problems. 

For many Tesla buyers, that aspiration is probably still very true at a personal level.

Yet in the eyes of millions of existing and potential customers, the perception of Tesla, or more accurately, its CEO, has shifted significantly. 

Elon Musk’s polarising public presence has made Tesla more than just a car. It’s still a highly symbolic purchase, but not one that many of its original customers want to be associated with.

The green and tech credentials that appealed to so many buyers have been sidelined by other concerns. Tesla’s conventional sedans have been overshadowed by its huge and aggressively-styled Cybertruck.

But even more importantly, the close association between the Tesla brand and its CEO has changed from being a valuable asset to, in many cases, a significant liability. 

For some, Musk’s unfiltered approach is part of the appeal. But for others, it’s a dealbreaker, with many of his recent actions and statements being at odds with their deeply-held progressive values and worldview.

The brand that once represented sustainability and innovation is now caught in an ideological tug-of-war. And when a brand communicates a shift or stops feeling like a neutral choice, customers reassess their loyalty.

Tesla sales in many markets have gone off a cliff, the decline accelerated by an array of new competitors from China that appear well-positioned to take advantage of any Tesla misstep. 

The cost of a brand identity crisis

Other brands have faced similar identity crises when they misjudged their audience’s expectations. Bud Light’s 2023 PR disaster wasn’t just about a partnership with a transgender influencer—it was about inconsistency. 

The brand had never positioned itself as progressive, nor had it firmly embraced a traditional stance. So when it dipped a toe into cultural conversations without committing to a clear position, it alienated both sides. The backlash was swift, with sales plummeting, and a year on, Bud Light fell from first to third place in US beer sales and remains in decline.

Gillette’s “The Best Men Can Be” campaign was another high-risk move. The ad, which challenged toxic masculinity, was praised by some but criticised by others as preachy and alienating. Unlike Bud Light, Gillette stood by its message. It made a choice to align with a more progressive audience, accepting that it might lose some customers in the process.

That’s the key difference between brands that survive an identity shift and those that struggle: intentionality. When brands evolve with a clear, deliberate strategy—like Nike embracing activism or Patagonia doubling down on sustainability—they retain their core audience. When the shift feels accidental, reactive, or contradictory, they risk losing trust.

Right now, it’s hard to know if what’s happening with Tesla is the result of any deliberate and strategic corporate decision. It doesn’t feel like it, but the problem for the company is that for a large slice of the public, it doesn’t matter anymore. They’ve made up their minds, and the consequences are already unfolding.

When brand perception tanks, so does value

Brand sentiment isn’t just about image—it has direct financial consequences.

Tesla’s resale values, once among the best in the industry, are now plummeting in some markets. A year ago, America’s used Teslas held their value better than almost any other EV. Now, prices have dropped from a 2022 high of $US70,000 to $US30,000 in February, as owners rush to sell. 

Tesla’s stock has also taken a huge hit. While it remains a powerhouse in the EV space, investor confidence is tied to public perception. As customer enthusiasm wanes, so does the long-term outlook. The company is still selling cars, but it’s lost the aura of inevitability—that sense that owning a Tesla is a statement about the future.

When brand trust declines, so does demand. And when demand weakens, so does value.

The balancing act of brand evolution

A great brand isn’t static. The best ones adapt to shifts in culture, technology, and consumer expectations. But evolution has to feel intentional—an extension of the brand, not a contradiction of it.

1. Know what matters to your audience 

Brands don’t exist in a vacuum. Tesla may never have positioned itself as a politically progressive brand, but many of its buyers were, and it benefited from the association. Now, as the public narrative shifts, many of those same customers feel disconnected. The most successful brands actively listen, understanding not just what people are buying, but why.

2. Separate product from personality

A strong leader can be an asset, but when the leader becomes the defining feature of a brand, it creates unnecessary risk. Tesla’s innovations once spoke for themselves, but today, its public perception is largely shaped by Elon Musk. When leadership overshadows the product, customers start making purchasing decisions based on who they’re buying from, not just what they’re buying.

3. Stick to core values

The brands that navigate change successfully don’t chase trends or force reinvention. They evolve by reinforcing what customers already trust them for. When done well, brand evolution feels like a natural extension, not a sudden shift. Companies that maintain clarity on their values—whether it’s innovation, reliability, sustainability, or craftsmanship—can expand their audience without alienating their core. Abrupt pivots, on the other hand, can feel inauthentic and erode trust.

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The brands that endure are the ones that stay attuned to their customers, remain larger than any one individual, and evolve without losing sight of what made them successful in the first place. Values define a brand’s relationship with its audience. Get them right, and they create loyalty. Get them wrong, and customers will look elsewhere.