Can Tesla's reputation be saved? A crisis management expert weighs in.

Updated Thu, Mar 27, 2025, 7:11 AM 5 min read

Boeing, Bud Light, Facebook — these are just a few of the biggest brands that at one point faced a major public relations crisis. This is where electric vehicle stalwart Tesla (TSLA) finds itself. The company's stock has been in free fall since the start of the year, with sales slipping in key regions like Europe and China and even in the US.

CEO Elon Musk's closeness to President Trump and embrace of right-wing politicians in Europe has seen Musk — and Tesla's brand — suffer. Protests both in the US and abroad at Tesla showrooms are growing, as are acts of vandalism on Tesla EVs. Another wave of Tesla protests is slated for March 29.

Crisis in motion: A protest against Elon Musk's role in the US government in front of the Manhattan Tesla dealership in New York City's Meatpacking District on March 22. (Andrea Renault/STAR MAX/IPx) · Andrea Renault/STAR MAX/IPx

Yahoo Finance spoke to crisis management expert Eric Dezenhall, founder of Dezenhall Resources and veteran of many high-profile crisis responses. Though he declines to name his clients, Dezenhall has reportedly worked with large corporations like General Electric, Exxon Mobil, and Procter & Gamble. He also authored the book "Wiseguys and the White House," which is about the history of organized crime's influence on the presidency.

The following is a condensed version of a conversation with Dezenhall about his thoughts on Tesla, Musk, and what, if anything, can be done now to repair the brand damage.

Pras Subramanian: What's your take on where things stand now with Musk, Tesla, vis-à-vis the general public?

Eric Dezenhall: It's almost impossible to be a politically divisive figure while running a consumer brand. X/Twitter is one thing: You could make the argument that its purpose is political, and if you can build a consumer base on that, fine.

Tesla is something different. It's a consumer product that was marketed as an alternative to fossil fuel-burning cars. This was appealing to progressives and even some conservatives. It's lost its status as a progressive "badge" product.

Elaborate more on what "badge"-like status means for a brand, and can you think of another brand that suffered a similar fate?

Bud Light. Beers tend to be badge products as they inspire loyalty for reasons other than the product itself. "Come over for the Super Bowl. We'll have Bud Light." It's about feeling. The Dylan Mulvaney fiasco blew that up because it told loyalists, "We have no idea who you are, and we don't care."

Tesla really was and is a unique product, but now there are other EVs, so it's not as special as it once was. Other brands have a shot at the eco-friendly badge.

What do Tesla and Musk have to do to limit the damage, perceived or real, that we see right now?

A lot depends on two things: Does Musk stay in his DOGE position? If so, it will be hard to build Tesla back unless the product itself is so much more extraordinary than competitors — which it once was.

If he leaves DOGE and gets back to what made him, the public can forget the recent unpleasantness over time. If he stays with DOGE and keeps the slash-and-burn at this pace, it will be hard to balance both.

Damage done? Elon Musk listens to President Trump speak in the Oval Office of the White House in Washington, D.C., on Feb. 11. (Reuters/Kevin Lamarque//File Photo) · Reuters / Reuters

If Musk remains at DOGE, do you really think new products would be enough for Tesla to overcome his political ambitions that are alienating customers?

People can overlook a lot if they love a product. Look how many years we ignored the perils of social media because they were addicted to their phones. In the face of overwhelming evidence, we're just starting to ask tough questions about our phone addiction.

If Musk comes up with something amazing, people may revisit their sentiments, but I have no idea what that could be.

With things as they are, how would you advise Musk under these circumstances if he were your client? What are some steps he or management could take?

The problem is that you can't advise guys like this. I've had clients in this stratosphere. They view advisers as their deep inferiors because they have prospered by violating norms that would have destroyed anyone else. What goes around never comes around, so why listen?

President Trump talks to the media next to Tesla CEO Elon Musk, with a Tesla car in the background, at the White House in Washington, D.C., on March 11. (Reuters/Kevin Lamarque/File Photo) · REUTERS / Reuters

But my advice would be simple: The aim of crisis management is to stop an attack, not improve an image. First, get back to business. Leave politics to somebody else. This isn't your thing. But that advice doesn't matter because he's at the center of global discourse. That's the main thing that has value in 2025.

Is the board asleep at the wheel here? What would you tell them given the circumstances with their CEO? Bloomberg just reported that Tesla chair Robyn Denholm refused to answer questions at an event about Musk and whether he was too distracted.

Boards at companies with charismatic founders are different from regular boards. They're about supporting the king more than anything else. They're not asleep: They know exactly what's happening but are likely tiptoeing around the king or banging their heads against a wall. There is no earthly reason why Musk would listen to anyone. Gravity has never applied to him — and may never.