Experts Cite Mask’s “Doge” Involvement as a Key Disruption in Branding | Elon Musk

Scott Galloway, a prominent marketing professor in the US, described Elon Musk’s strategy of implementing severe work and spending reductions within the federal government on behalf of the Trump administration as “one of the greatest brand disruptions ever.”

During a recent episode of the popular Pivot Podcast, he mentioned that he argued that Trump’s billionaire business advisor alienated the customer base of Tesla, one of his key ventures, while partnering with a president uninterested in the types of vehicles his allies produce.

Galloway also pointed out a vote indicating that Tesla fell to No. 95 in 2021 from its previous position as the eighth most reputable brand.

“He alienates the wrong audience,” Galloway commented. “Three-quarters of Republicans will never consider purchasing an EV. He seems comfortable associating with people who aren’t interested in electric vehicles.”

He also cited statistics showing that Tesla’s sales reached 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland, and 33% in Portugal.

Over the past few months, Musk has attempted to intervene in various political matters across Europe, including the German federal elections and the UK’s discussions regarding grooming gangs.

A report from Jato Dynamics, a provider of automotive industry insights, noted that Tesla’s Chinese rival, which is based in Austin, gained traction in the lucrative European EV market after previous competitors faced challenges.

“This was certainly one of the largest brand disruptions,” Galloway told his co-host, veteran tech journalist Kara Swisher. “Tesla was an outstanding brand.”

“He alienates his key demographics.”

The reductions in federal government operations and budget linked to Musk stemmed from his role in leading the Office of Government Efficiency (DOGE) during Trump’s second term, which commenced in January. Musk secured this position after his Super Political Action Committee contributed $200 million to Trump’s successful bid to reclaim the White House following his 2020 election loss.

Since then, opinion surveys have indicated significant disapproval of Musk’s efforts for Trump, revealing that many voters were dissatisfied with the approach taken by the businessman and DOGE towards federal employees.

By late April, Tesla had reported a 71% drop in profits. In a revenue call with Tesla investors, Musk announced he would step back from his role in DOGE in May.

Musk described his responsibilities as “primarily managing the financial aspects of order” in the government, predicting “a considerable decrease in time dedicated to DOGE.”

A nonpartisan research organization, Public Service Partnership, estimated that the $160 billion cuts credited to DOGE would ultimately amount to around $135 billion.