Elon Musk is synonymous with some of the world’s most visible and influential brands. However, the first quarter of 2025 has resulted in a huge drop in valuation for his flagship brand, Tesla. Can Musk turn the tide, or are there bigger plates spinning away in the background that will ultimately demote the brand as a fallen giant?

The X Conundrum

The way the South African billionaire has leveraged this company in the past, in many ways, has been an extension of an image of himself he’s trying to market. His recent takeover of Twitter, now marketed as X, has seen him try to become a quasi-digital Emperor of free speech, which, ironically, has resulted in the site becoming a more restrictive echo chamber that appeals to one demographic.

With a tireless approach to turning X into the everything app, becoming a one-stop shop for all things entertainment, ranging from gaming to crypto to casino gaming, it seems an ambitious ecosystem idea for a site that’s miles behind in the social media rankings—never mind the gaming world.

Cryptocurrency is something Musk has got behind before. While a crypto casino platform might not be the final form of X – it would bring in many new customers, especially with its vast market share in the UK and US – where casinos and cryptocurrency are becoming much more significant parts of society. If he can tackle this, he may gravitate his energy back toward Tesla – which will invariably help the stock price recover.

Separating The CEO From The Business

His approach to marketing Tesla as a brand that doesn’t advertise and his creation of a cool EV equivalent to the gas guzzlers destroying our planet made him an unusual figure in the automotive world. There was an enigma to unravel. Although the brand does now spend six-figures annually advertising on social media.

While Elon was in the shadows, it provided more mystery for investors and made the brand a superb alternative to the norm, which people gravitated to. It was a genuine alternative in a market that has traditionally not offered alternatives.

However, it set the foundation for the company and Elon to be one and the same. If something impacts the individual, it rocks the business. Many shareholders would have no qualms with this when the South African almost single-handedly engineered himself into a prominent position in the higher echelons of power and sent the stock soaring. His net worth has expanded from $20 billion in 2022, to over $400 billion in 2024 – a staggering leap.

Exploring The Current Damage

Tesla’s stock price has been causing huge problems for investors in 2025. While the whole stock market is suffering, Tesla lost a 12-figure sum from its market cap in less than 4 months. It’s an eye-watering sum of money.

Other factors are at play here, but there’s no ignoring the elephant in the room. Elon’s constant presence on X, which, despite what he says, results in him ignoring his other duties as Tesla CEO, is something savvy investors have not ignored.

Plenty of key investors and those who own millions in the blue-chip stock have been scrambling for the exit for large parts of Q1. With the stock price dropping nearly 40% since its previous highs in November, how will Musk be able to utilise his newfound role as chief of X, formerly known as Twitter, and an individual who has become integral in the day-to-day running of the current US administration?

What’s The Route Back To Success?

If I knew how to add $100 billion to a company’s market cap, I wouldn’t be writing this article. However, it feels like Musk needs to take some obvious steps to instil faith in Tesla again.

• Paint out a clear long-term vision for the company.
• Start posting on X far less.
• Stop getting involved in divisive issues which harm his brand.

Tesla is uniquely positioned as the brand is so fused to the CEO. Other brands do have this to some extent, but few billionaire CEOs are as visible, opinionated and divisive as Elon Musk. In the short term, this helped people feel more attached to him, even if he does live with an echelon of society that none of us will ever get near.

However, in the medium to long term, the impact of his unclear, erratic and unhelpful rhetoric is clearly sending the Tesla stock through the floor.

Final Thoughts

Some traders and investors believe this is a more natural price, which is a fair argument. It’s been marketed as a meme stock, a tech stock, an EV stock, or a combination of the three.

Ultimately, if you had to pick one, it’s the latter. Musk’s bloviating and preaching to the converted via his digital sermons on X has done nothing for investors who initially believed they were investing in a once-in-a-century product and individual.

However, now that the dust has cleared, it feels like he spends every working day on Twitter, formerly known as X. Investors realise, en masse, that they may have backed the wrong horse. Simply put, the bigger question is, has the world has moved on from Tesla’s golden era? Other, more affordable electric vehicles are a much better brand to associate yourself with than the highly politicised elixir of Telsa, Musk, and dangerous, misinformed and divisive opinions.