Tesla isn’t doing well right now. This very expected news reminded me of an unexpected discovery from History Factory’s 2020 research study “Perils of the Past.” The study explored which types of past actions by companies considered inconsistent with today’s ethics and standards were most likely to damage long-term consumer trust. What we found was a surprising disconnect between the assumptions of C-suite leaders and actual consumer sentiments. Executives assumed that scandals involving racial injustice, gender discrimination or financial misconduct would provoke the strongest backlash. Consumers told a different story: They said they would react more negatively to actions that were related to potentially divisive social or political causes or environmental negligence.
It was reported this week that Tesla’s income slid 71% this quarter. That’s… not good. The issue is the concentration of risk when a single individual’s volatility becomes a company’s volatility. It’s a strategic reflection on what happens when a brand and publicly traded company ranked 40 in the Fortune 500 with 120,000 employees is so deeply identified with a single individual and his actions.
Almost every business celebrity is a CEO (and often a founder). Especially as business brands increasingly become part of popular culture, the stewards of their reputations may need to be more aggressive about using the casts of characters at their disposal. A broader range of voices deepens relatability and broadens appeal. When a company’s entire narrative revolves around one personality, especially while they’re still in the public eye, that exposes the organization to unpredictable swings in loyalty, reputation and market value—and that risk doesn’t vanish when they exit.
On the flip side, companies that have broadened their leadership spotlights may not only more effectively navigate challenges and survive transitions but also grow through them. Consider:
- Apple: Steve Jobs was the visionary leader, Jony Ive the beacon of functional simplicity and design aesthetics, and Tim Cook the engineer and steady hand of continuity.
- Southwest: Herb Kelleher was the business maverick and Colleen Barrett the culture carrier.
- Disney: Bob Iger is the strategic leader, while Kevin Feige and Kathleen Kennedy are the creative powerhouses.
- Netflix: Reed Hastings built the platform, and Ted Sarandos built the content engine.
- Berkshire Hathaway: Buffett and Munger had a public dialogue and have passed the torch to Greg Abel and Ajit Jain.
In today’s world, authenticity and relatability matter more than ever. Companies may be more resilient and durable when they spotlight multiple characters rather than just one. When a brand highlights not just its founders and executives but also its design minds, cultural stewards or operational gurus, it builds greater capacity for communicating and connecting in a complex media ecosystem. Informed and engaged audiences are likely aware of more than one player on their favorite sports teams, but I’d wager the same can’t be said about their favorite brands. Show the people Tesla’s equivalent to Luca and Austin, and maybe former loyalists will be more empathetic to the brand.*
How many people are fans of Franz von Holzhausen or have an affinity for the vision of Martin Eberhard and Marc Tarpenning? Anyone? If you didn’t raise your hand, you’re not alone. Franz is Tesla’s longtime design chief. Martin and Marc are the company’s founders. Yes, founders—the ones who had the original idea, secured the first patents and laid the groundwork for the company Elon Musk later helped scale. But today, Elon is the brand’s only face, voice and gravitational center, and that’s the problem.
A 2021 interview with Tesla’s founders is an intriguing and prescient watch. They acknowledge Musk’s contributions and talents while expressing frustration that he takes credit for Tesla as a co-founder. Eberhard notes, with a bit of dry understatement, that “Elon’s Elon-ness has increased over the years.” Later, he adds, ironically, “Tesla has done a great job of building a loyal fanbase. Their followers will accept anything from them.” It turns out all fans have their limits.
History suggests that consumers are fickle, and the boycotting of and retaliation against Tesla will subside. I’m not naïve. Convincing someone like Elon to share the spotlight must be no small task, but brand stewards must try, and Tesla has taken this approach. Although its public-facing executive team is only three people, its 2023 Investor Day featured more than a dozen executives on stage. It doesn’t take many. Just a few good high-profile men and women can make a difference.
The solution isn’t to diminish founders or CEOs. It’s to surround them with others who can reflect the full spectrum of an organization and what a brand stands for. The real opportunity for Tesla—and for any brand—is to build a bigger cast of characters, because when the brand story and business performance are tied so tightly to one person’s presence, the stakes multiply. Diversify the narrative to help ensure the story lives on long after any main character leaves the stage.
*This statement should be in no way construed as making a comparison of characteristics between Elon and Lebron (beyond both of their names ending in “on”).
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