From Tesla Pride to Tesla Shame in just a few weeks. Do’s and Don’ts of CEO brand-identification.
Dirk Aarts
Trust, Reputation, PR, Entrepreneurship. CEO and Founding Partner at 24/7Communication. EO'er
In today’s business world, a charismatic and visionary CEO can be a company’s greatest asset. Leaders like Steve Jobs, Richard Branson, and Elon Musk have built personal brands so closely intertwined with their businesses that they become almost inseparable. This connection can drive customer loyalty, attract media attention, and boost investor confidence. But when a company becomes too identified with its CEO, the risks can be just as great as the rewards.
Tesla is the latest example of this dynamic playing out in real time. Elon Musk’s increasingly repulsive political involvement, in particular an inappropriate saluting at Donald Trump’s inauguration, has alienated a significant portion of Tesla’s customer base. Many potential and current Tesla drivers, have gone from Tesla-pride to Tesla-shame in just a few weeks. While the vehicles remain admired for their innovation, public perception has shifted: many now associate the brand less with cutting-edge technology and more with Musk’s political views – or worse – with Nazism. The consequences have been immediate: Declining sales and a sharp drop in stock valuation.
Tesla is not alone in facing this challenge. Uber was thrown into crisis when its then-CEO, Travis Kalanick, became embroiled in scandals related to toxic workplace culture and legal battles, forcing him to step down. Similarly, WeWork’s dramatic implosion was tied to the erratic leadership of its founder, Adam Neumann. These cases serve as a cautionary tale: when a company’s identity is too tightly linked to its CEO, it can rise - and fall - with them.
?The Double-Edged Sword of CEO-Driven Branding
A strong CEO-brand connection can be powerful, but also precarious. On the one hand, it can fuel a company’s growth:
? Trust and Authority – When a CEO authentically embodies a brand’s vision, they create a strong emotional connection with customers. Steve Jobs’ obsession with design and perfection made Apple products feel like a natural extension of his personality.
? Media Magnetism – A well-known CEO generates ongoing media coverage, often without paid advertising. For years, Musk’s tweets kept Tesla at the center of public conversation.
? Investor Confidence – Visionary leadership attracts investment. Jeff Bezos’ relentless focus on innovation reassured Amazon investors even during turbulent times.
But those same strengths can sometimes become weaknesses.
? Reputation Risk – A CEO’s missteps, whether in business decisions, personal behavior, or political affiliations, can directly impact the company. Musk’s political involvement has triggered customer backlash and declining sales.
? Crisis Amplification – If a CEO is embroiled in controversy, the brand suffers alongside them. Uber’s public trust eroded after Kalanick’s leadership scandals.
? Succession Challenges – Companies that revolve around a single leader often struggle when it’s time for change. WeWork lacked a clear identity beyond Adam Neumann, and his downfall accelerated the company’s collapse.
How to Get CEO Branding Right
In the end, a brand must be larger than any single individual. Companies that recognize this will be better equipped to weather storms, build lasting trust, and thrive for years to come.