Oops, Tesla’s brand value just plummeted 35 per cent

Tesla has suffered a dramatic drop in its brand value, falling 35 per cent and into 25th place in Interbrand’s influential Best Global Brands 2025 ranking. The annual report, which evaluates the strength and influence of the world’s most valuable brands, highlights a seismic shift in the increasingly competitive EV landscape. Established players like Toyota, Mercedes-Benz and BMW maintain their spots in the top 20.

Tesla’s sharp decline over the course of a single year is noteworthy. While it’s tempting to lay blame at the feet of the company’s leadership, Interbrand’s report suggests a more pragmatic reason for the change in consumer attitudes towards Tesla: a maturing EV market with a widening selection of credible alternatives to choose from.

Sales of new Tesla cars in the UK and Europe were flat in September following big falls earlier in the year, while the overall market for EVs has seen strong growth. Alongside updates to its best-selling car, the Tesla Model Y, the company hopes to spark more demand with the launch of the new Tesla Model Y Performance.

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In contrast, traditional car brands proved more resilient in 2025. Toyota posted a two per cent growth in brand value, holding firm in sixth position in the global ranking and cementing itself as the most valuable automotive brand in the list. German giants Mercedes-Benz (#10) and BMW (#14) also kept their top-20 spots despite brand value declines of between 10 and 15 per cent. The report credits their staying power to brand heritage and a reputation for quality.

This year’s Best Global Brands ranking also sees some fresh faces. Chinese manufacturer BYD enters the table for the first time at #90, an early indicator of its growing global influence. The brand impressed us this year with the all-electric BYD Dolphin Surf and plug-in hybrid BYD Seal U DM-i. Meanwhile Ferrari showed huge growth outside of cars, increasing its brand value by 17 per cent by tapping into the wider luxury market through fashion, accessories and licensing.

Greg Silverman, global director of brand economics at Interbrand, said “the brands winning in 2025 are those that view disruption as an opportunity. Whether it’s Instagram scaling into ecommerce, Netflix expanding into live entertainment, or Ferrari entering fashion and hospitality – they’re using brand to unlock new revenue streams.”