Musk's F-Ing Message
The genius of our age is scaring Tesla's customers
“Go fuck yourself. Is that clear? I hope it is." – Elon Musk.
You just can’t tell your customers to get lost – tempting as it might be – because they will do just that, and you’ll be the one with red ink on your face.
Elon Musk apparently isn’t a genius about everything because he’s losing billions of dollars to learn this fundamental business lesson first-hand.
Tesla sales, and Tesla stock, are splashing down like Space X rockets. On Tuesday, the electric car maker said its first-quarter deliveries were down 20% from the previous quarter and 8.5% from the same quarter last year.
Year-to-date, Tesla stock is down more than 32%.
Brand on the run
When you are a proven genius and rank among the world’s richest men, you don’t have to care what anybody thinks – unless you want to sell them something.
Market intelligence firm Caliber says Musk's polarizing persona is denting the Tesla brand.
Tesla’s “consideration score” dropped to 31% in February, compared to a 70% in November 2021, according to Caliber’s data, which was exclusively released to Reuters.
"It's very likely that Musk himself is contributing to the reputational downfall," Caliber CEO Shahar Silbershatz told Reuters.
Tesla blamed logistics issues for the deliveries decline, including Houthi militia attacks on shipping in the Red Sea and an arson attack on its Berlin factory. But that’s the supply side. Caliber’s report shows Musk’s bravado is crushing the demand side.
Caliber is not alone. In February, consultancy Brand Finance reported that Tesla’s brand value has slipped 12%, falling below Mercedes-Benz as the world’s most-valuable auto brand.
“Tesla’s drop to second position comes in the context of controversies surrounding Elon Musk which have affected the electric car maker’s reputation,” the consultancy said in a press release.
Tesla’s investors have taken note.
“Basically tesla can’t sell its cars due to Elon’s behavior,” fund manager Ross Gerber tweeted on Wednesday. “Let’s stop blaming the Houthi rebels or German environmental terrorists. Or a recession that never came. Or interest rates. Only one person responsible for this. $TSLA.”
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