Tesla Brand Popularity Declines Globally Amid Rising Competition, Market Share Losses

Tesla's brand reputation and market position are facing significant challenges globally, despite recent stock gains driven by anticipation of new products like robotaxis and humanoid robots. UBS surveys reveal declining consumer interest in Tesla's electric vehicles across key markets including the U.S., China, and Europe, citing increased competition, limited vehicle lineup, and concerns over CEO Elon Musk's political involvement as contributing factors. Tesla's market share in China has dropped substantially from a 30% peak in 2020 to just 14% in 2024, with competitors like BYD and Xiaomi gaining ground. Similarly, Tesla's sales in California fell in the first quarter of 2025, causing the company to drop from the second to third best-selling auto brand in the state, reflecting growing competition in the EV market. Public perception of Tesla has also plummeted, with the Axios Harris Poll ranking Tesla's brand reputation falling from eighth place in 2021 to 95th in 2025, largely due to Musk's controversial actions and statements. UBS analysts remain cautious on Tesla's stock, warning that while the company's future may lie in autonomous vehicles and robotics, the core automotive business faces deteriorating fundamentals and brand damage.