Permanent Brand Damage

So it seems Tesla has permanently lost the "darling" status. The once super-valuable brand has been damaged. There are many discussions about the company fundamentals. Whether it is a c ar or a software company. And how much of an advantage the gigapress process offers and how relevant the supercharger network is.

In my personal view all these discussions, while important, are secondary. 

Tesla had never been superior on all fronts. But it had a huge fanbase. Owning a Tesla was considered a smart move. The Tesla crowd felt smart and superior.

It is all gone now. Worse - the impact has actually reversed. The status contribution is negative. The brand value has been ruined and it will be super difficult to rebuild it. If possible at all. Information portals like Bloomberg are publishing guides for Tesla alternatives. Parking lots and car dealerships are crowded with used Tesla cars, which people are getting rid of or trading in when buying other brands. This used car situation will put additional pressure on the sales of new cars for the company.

Interestingly, this is not the first time in the recent history when a brand was ruined and the owning company went bust. Many of you remember Nokia.  There were different reasons behind Nokia's collapse, but similarly to Tesla it was once one of the most valuable global brands. On the other hand I do not recall a situation when a brand was destroyed and then recovered.

In any case - and this is a serious lesson for all company leaders - brands are super fragile. And should be treated as such. Building a brand value is a very long process. Destroying it is possible in a blink of an eye.