Elon Musk’s Empire Is Crashing And It’s Not Just Tesla

Elon Musk’s empire is taking a reputational nosedive. According to the Axios/Harris Poll 100, Tesla and SpaceX have seen their public perception plunge from the top tier to near-bottom in just a few years. Tesla ranked 8th in 2021 but tumbled to 95th in 2025, while SpaceX fell from 5th to the bottom third. Twitter—now called X—never really had the chance to fall far. It started near rock bottom and stayed there.

So what’s behind the collapse? In short: politics, polarization, and Musk himself. Once seen as a brilliant, eccentric visionary, Musk has morphed into a polarizing figure at the center of America’s culture wars. His close alignment with Trump and conservative causes has fractured his consumer base, with Democrats in particular turning sharply against him. According to Reuters, 58% of Americans now view Musk unfavorably—a shift largely driven by a wave of Democratic disapproval.

This isn’t just a PR headache. It’s affecting the bottom line. Tesla’s Q1 2025 deliveries fell 13% year-over-year, marking its steepest drop in nearly three years. Organized protests in major cities like London and Boston haven’t helped, and the slogans say it all: “Sell your Tesla, dump your stock.” Analysts now predict another down year for Tesla despite price cuts and a refreshed product lineup. Since its late-2024 high, Tesla stock has fallen nearly 45%.

Tesla’s brand image has taken a hit in the ethics department too. It ranked dead last in “character” in the Harris Poll, and also scored poorly on ethics and citizenship. A mix of controversies—from Musk’s offhand Nazi jokes to workplace culture issues and autopilot accidents—has fueled the perception that Tesla isn’t just troubled, but fundamentally out of step with consumer values. The company is pivoting with incentives and a promised $25K EV, but winning back trust may take more than a new model.

SpaceX, on the other hand, is faring better. Its reputation has dipped, but financially it’s solid—thanks to major government contracts. With over $13 billion in deals from NASA and a commanding position in the launch market, SpaceX has momentum. Starlink alone is projected to generate $24 billion in revenue by 2030. But politics could still play a role: if Democrats return to power, Musk’s growing involvement in policy could put future contracts under a microscope.

Despite the noise, SpaceX’s fundamentals are strong. It has a deep lead in launch tech, a vertically integrated model, and international demand. Analysts even suggest it could become more valuable than Tesla in the long run. The brand image matters less here—its customers are governments, not consumers.

Then there’s X. Musk’s rebrand of Twitter has gone from chaotic to costly. After Musk’s 2022 takeover, advertisers pulled back fast, spooked by content moderation rollbacks and Musk’s unpredictable behavior. Since then, ad revenue in the US has fallen more than 55% year-over-year every month. While some advertisers have cautiously returned in 2025, it’s nowhere near the $4.5 billion highs of 2021.

Regulators are now circling. The EU has charged X with violating digital laws and even floated the possibility of banning it outright if moderation doesn’t improve. Musk’s livestreams with far-right figures and conspiracy theory posts haven’t helped rebuild trust. And now, X is officially under xAI. Musk says this move will supercharge his chatbot Grok using X’s data, but critics see it as a pivot toward building a data engine rather than a media platform. Without major advertisers or a strong subscription base, X’s future looks shaky.

Taken together, Musk’s three major companies are navigating choppy waters. Tesla is losing sales and goodwill, SpaceX is cruising but facing long-term political risks, and X is struggling to survive. The common denominator? Elon himself. His political presence may have once been a moat—but today, it looks a lot more like a minefield. Whether he can step back and rebuild trust may be the key to whether these companies bounce back or break down.