[en] This article analyzes the recent decline in Tesla's brand image and market
valuation, arguing that the primary cause is reputational contagion
stemming from its CEO, Elon Musk. Using a simple qualitative case study
approach, the analysis integrates established academic frameworks —
namely Situational Crisis Communication Theory (SCCT) and CEO brand
contagion theory — with data on brand perception, media sentiment, and
financial performance. The study identifies two primary drivers: first, the
politicization of the Tesla brand through Musk’s public rhetoric, which has
alienated key consumer groups; and second, the repeated use of
inappropriate “deny” and “diminish” crisis responses rather than adopting a
“rebuild” posture. Together, these factors have undermined Tesla’s brand
equity, eroded its perceived leadership in innovation, and heightened stock
price volatility amid intensifying competition. The article concludes by
proposing a three-part strategy for brand restoration, focusing on the
strategic repositioning of the CEO, a shift in crisis communication tactics,
and a reassertion of Tesla’s founding mission of sustainable technological advancement.
