Tesla faces a complex phase, and this challenge did not start recently. The sales decline recorded in 2025 confirmed a negative trend that had already appeared during 2024, with the American automaker gradually losing ground to major competitors. In this context, the global overtake by BYD in the electric vehicle market marked a symbolic turning point and highlighted a shift in industry balance.
Tesla reputation declines in Europe as brand trust weakens
The current situation involves more than industrial factors or market dynamics. Brand perception has weakened, especially in Europe. A recent analysis by the Finnish firm Reputation and Trust Analytics shows Tesla’s image in the region at one of the lowest levels ever recorded. Unlike the United States and China, where production and logistics also influenced the slowdown, in Europe consumer trust stands as the main issue.
The study examined the reputation of major companies across five countries with strong electric mobility adoption: Germany, Sweden, Norway, Denmark and Finland. In each of these markets Tesla lost ground significantly and in some cases moved close to the bottom of the rankings. The evaluation uses a five-point score based on key parameters such as leadership, product quality, social responsibility, governance and working conditions.
The most critical result appears in Germany, where Tesla scored 2.48, a value that reflects a very negative reputation. Slightly better results appear in Finland and Norway, confirming a broader trend of growing skepticism toward the brand. In several cases Tesla ranks below companies often criticized for environmental or social practices, including Temu and Shein, while oil companies, airlines and restaurant chains now show a more positive perceived image.
Innovation remains the only area where Tesla continues to stand out and helps limit the overall decline without reversing the trend. The main weaknesses involve governance, social responsibility, workplace environment and leadership. According to the analysis, these aspects reflect the impact of Elon Musk’s public positions on brand identity.
The reputational decline did not occur suddenly. In countries such as Sweden Tesla ranked among the most appreciated brands in 2021 and 2022, while in 2026 the situation looks very different. This shift shows how brand perception has become a decisive factor in the global electric mobility market alongside industrial competitiveness.
