The Inevitability of Choice: an analysis of Elon Musk's brands

Why is Tesla losing popularity among its customers? Additionally, why are Tesla and X perceived differently by users and consumers despite both being associated with Elon Musk? Prof. Francesco Lurati, a full professor at the Faculty of Communication, Culture and Society at Università della Svizzera italiana (USI), discussed this topic in an interview published by RSI Info.

Professor Francesco Lurati states that the problem arises because the Tesla brand and its associated image are now poorly aligned with the Musk brand. "This misalignment did not occur with the purchase of Twitter, which Musk took over and demolished to create X. While his approach may be morally questionable, it was, in a way, understandable because he created a platform that reflected his values. He aimed to turn the social network into a space without filters, allowing anyone to express themselves freely, even if their statements are false, manipulative, or offensive. Regardless of one's opinion on the new platform's approach, Operation X represents a coherent strategy: he dismantled one company and built another in its image," explained the USI Professor.

The same thing, Professor Lurati specified, cannot be said in the case of Tesla: "The current issue with this company is that it was built on values that differ from those Musk currently espouses, or at least how the public perceives them. A notable example of this is the sticker many Tesla owners display: 'I Bought This Before We Knew Elon Was Crazy' Musk's challenge with Tesla lies in the lack of alignment between his personal brand and how the company has been positioned and perceived up to this point. He will inevitably need to address and clarify this ambiguity."

This need arises because the US billionaire is not only the owner of several brands but has also become "a brand" himself, conveying clear messages and values: "A CEO who decides to expose himself with his ideas cannot expect people to separate the brand from the individual. Tesla, therefore, must take a definitive stance, just as X did. The issue with Tesla is that it has chosen a middle-ground approach, which is the worst possible choice in today's increasingly polarised environment. Companies are expected to make their positions known, especially when they are led by individuals with clear positions. Half measures are catastrophic: you cannot take sides depending on which way the wind is blowing or, even worse, adopt a narrative that contradicts that of your leader. In a polarised world, making such mistakes comes at a cost," explained Professor Lurati.

The professor at USI clarified that, in business, no single position taken is superior to another; instead, it is essential to articulate one's ideas. "Clarity and alignment are what truly matter. In the case of X, Musk clearly positioned the company within the political spectrum. This decision caused some customers to leave the platform while attracting others. X has transformed into an activist company, embracing a form of corporate behaviour known as corporate activism, which is increasingly common in today's business landscape. Consider Patagonia, which was founded by Yvon Chouinard as an environmental activist company aligned with specific values. The company took a clear political stance by siding with the so-called "progressive" movement. But I will mention another example, which is the complete opposite: the Black Rifle Coffee Company, often referred to as the Starbucks of the political right, which went public in 2022. Its founder, a former military member, Evan Hafer, aimed to create a coffee shop tailored for veterans, police officers, first responders, and firefighters. This, too, is also an activist company, but it supports right-wing ideologies. As with Patagonia, Black Rifle Coffee Company has made a clear choice. Tesla lacks clarity, and this is worsened by the confusion surrounding Musk's position," concluded Professor Lurati.

The full interview with Professor Francesco Lurati, by Stefano Pianca for RSI Info, is available at the following link. (Italian only)