Tesla faces unprecedented reputational damage, analysts say

Tesla has experienced significant reputational damage recently, according to JPMorgan analysts. They noted this decline is unprecedented in the automotive industry, comparing it to past sales drops faced by Japanese and South Korean automakers in China. Protests against CEO Elon Musk have occurred at Tesla locations in the U.S., coinciding with his involvement in the Trump administration. Reports indicate a rise in violent incidents targeting Tesla facilities, including vandalism and arson in France and Germany. Tesla's brand value has decreased from $66.2 billion in early 2023 to $43 billion by October 2024. Sales in Europe and China have also sharply declined, with a 49% drop in shipments to China last month and ongoing sales decreases in California.