How to lose the support of the world
It’s been an unprecedented year for the unexpected. We knew there would be chaos once Trump returned to the White House, but who would have predicted that Elon Musk would be transformed from a super rich mega god, into a not quite so rich demon?
And Tesla! This is a moral of how far a brand can fall – even one as admired as this icon of electric car style and technological acumen. It is a modern day Aesop Fable.
For anyone wanting to impress on their team how quickly loyalty can go wrong, look no further. This example will stay in the loyalty text books for aeons.
Since Musk began his cost cutting assault on American public bodies with his “DOGE” initiative, his reputation both home and abroad has taken a massive hit. As he declines in popularity, so it is affecting how people feel about Tesla. Sales have fallen by as much as 70% in some European countries and in other markets the fall-out is similar.
It is possible for Tesla owners to buy stickers saying “I bought this Tesla before Elon went nuts” and there is a very good justification for why people need them. Tesla drivers are reporting being sworn at, gesticulated at – and worse. People are selling their electric dream cars because of fears they will be damaged by angry passers-by – both in the US and abroad. Cars are getting torched on forecourts. And this is happening across the world.
Why?
Because Elon has become Trump’s axe man, culling jobs in organisations across America. Trump isn’t doing much better, causing widespread anger and disbelief over his tariff policies which Musk supports. The fact that he has very publicly bought his own Tesla probably won’t help Elon’s company at all.
Musk has broken our trust through his involvement in politics and his hard to justify assault on ordinary working people. Whatever your own politics, it isn’t hard to see that this wouldn’t end well. Because he has plummeted in our estimation, his electric car brand can no longer have our loyalty.
The fall out will continue. People are finding it hard to sell their Teslas as the second hand market for them dives, but they are posting on social media that they are embarrassed to get behind the wheel. Teenagers are refusing to travel in their parents once admired models.
Can Musk turn this global rejection around? How long will it last? Who knows?
Disillusionment is difficult to undo. As any parent of teenagers knows, once you fall off your pedestal, it tends to be final.
So will it be the end of Tesla? Possibly, but X survived, and Musk has deep pockets. Trump’s support will calm the markets. Will Musk’s other businesses be tarnished? It’s hard to see how this can be avoided.
What will happen next? Soothsaying has become extremely difficult.
Lessons
Emphasise to your loyalty team the moral of this story because there is much to learn: Loyalty is ephemeral. It needs to be earned, and keeping it is a continuous process of reinforcing the trust, respect and gratitude you show your customers. What is also needed is a strong grasp on the morals of the company and its people. Lose this and loyalty flies out of the window.