Elon Musk's DOGE cuts hit Tesla, ‘he's alienated the wrong people,' says expert amid exit from Donald Trump admin
World's richest man, Elon Musk's decisions at the US Department of Government Efficiency (DOGE) that aims to cut federal spending of the Donald Trump administration have impacted his EV company Tesla, according to US marketing professor Scott Galloway.
Elon Musk's choice to enforce severe job and budget reductions within the federal government for the Trump administration was described as "one of the greatest brand destructions' ever.
The Tesla boss ignored the customer base of Tesla while aligning with the interests of the Trump administration, Galloway stated on Friday's episode of the popular Pivot podcast hosted by Kara Swisher.
'He's alienated the wrong people,' Galloway remarked. 'Three-quarters of Republicans would never consider buying an EV. So he's cozied up to the people who aren't interested in EVs," Galloway said.
He further cited poll data that showed Tesla had fallen from the eighth-most-reputable brand in 2021 to the 95th.
Galloway highlighted that Tesla's sales fell nearly 59% in France, 81% in Sweden, 74% in the Netherlands, 66% in Denmark, 50% in Switzerland and 33% in Portugal.
In the last few months, Musk has intervened in the political affairs of several European countries, a major EV market, on his social media platform X, including the election in Germany and grooming gangs in the UK. This has impacted Tesla sales in the region, CNN reported.
Recently, Chinese EV maker BYD outsold Tesla in Europe for the first time in the month of April, according to a report from 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," he added.
Tesla's European sales fell nearly 50% for the fourth month in a row, according to a report by CNN.
By the end of April, Tesla reportedly posted a 71% fall in profits, while Musk, during an earnings call, assured that he would cut down on his role as Doge from May onwards.
On May 29, Elon Musk announced that he is exiting the Donald Trump administration and leaving DOGE.
"As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending. The @DOGE mission will only strengthen over time as it becomes a way of life throughout the government," Musk posted on X.
Musk started heading the Department of Government Efficiency (Doge) during Trump's second term as president, which began in January.
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