Prominent US marketing professor Scott Galloway has called Elon Musk’s role in executing deep job and spending cuts within the US federal government on behalf of Donald Trump “one of the greatest brand destructions” in modern history.
Galloway said Musk had alienated the customer base of his electric vehicle firm Tesla – one of his most valuable assets – while aligning himself with a political figure whose supporters have little interest in EVs.
“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.”
Citing polling data, Galloway noted Tesla’s reputation had plunged from eighth place in 2021 to 95th. He also pointed to sharp declines in Tesla’s sales across Europe: down 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland, and 33% in Portugal.
Musk’s recent political interventions in Europe – including commentary on Germany’s federal election and the UK’s grooming gang debate, primarily via his social media platform X – have reportedly alienated European consumers in what has been a key EV market. In April, Chinese rival BYD outsold Tesla in Europe for the first time, according to data from automotive intelligence firm Jato Dynamics.
“This has arguably been one of the greatest brand destructions,” Galloway said. “Tesla was a great brand. He’s alienated his core demographic.”
Musk's controversial role stems from his leadership of the so-called Department of Government Efficiency (DOGE), formed during Trump’s second term after the billionaire’s super PAC donated $200 million to the former president’s successful 2024 campaign.
DOGE has overseen sweeping federal job and spending cuts, which have drawn widespread criticism. Opinion polls suggest strong public disapproval of Musk’s actions, particularly over how government employees have been treated amid the downsizing.
By late April, Tesla had reported a 71% drop in profits. During an earnings call, Musk announced he would begin scaling back his involvement with DOGE starting in May, claiming the task of “getting the government’s financial house in order” was largely complete and his “time allocation to DOGE will drop significantly”.
However, a nonpartisan watchdog, the Partnership for Public Service, estimated that the $160 billion in DOGE cuts could ultimately cost the government around $135 billion – raising further doubts about the effectiveness of Musk’s controversial cost-cutting campaign.
