- Musk damages Tesla’s European image twice as much as BYD’s Chinese government ties hurt its brand.
- Tesla’s biggest reputational hit comes from Musk’s political activity and his association with Donald Trump.
- BYD now rivals Tesla among European EV shoppers, despite ongoing concerns about ties to the Chinese state.
European car buyers remain wary of Chinese cars, although that sentiment appears to be shifting as several Chinese brands post strong, sustained sales growth across the continent. However, a new survey suggests Europeans are more bothered by Elon Musk’s ties to Tesla than Chinese carmakers’ government ties.
Musk’s political activity appears to be an even bigger liability than his reputation alone. When respondents were reminded of his donations to Donald Trump, Musk’s net favorability fell from minus 31 to minus 47. The same information pushed Tesla’s brand favorability to minus 42 and purchase likelihood to minus 40, making it the single most damaging finding for Tesla in the survey.
The July 2026 Electric Vehicle Intelligence Report, which surveyed 1,861 consumers from all 27 European Union countries, found 39% of respondents said Musk negatively affected their perception of Tesla. Just 13% of respondents said his involvement with Tesla improved their opinion of the brand, while another 35% said he made no difference.
Musk’s political activity appears to be the bigger liability. When respondents were reminded of his donations and support for Donald Trump, Musk’s net favorability fell from minus 31 to minus 47. The same information pushed Tesla’s brand favorability to minus 42 and purchase likelihood to minus 40, making it the single most damaging finding for Tesla in the entire survey.
BYD’s ties to the Chinese government were also viewed negatively, but by a much smaller margin. One quarter of respondents said those links made them less favorable toward BYD, while 12% said they improved their opinion of the brand. That produced a net score of minus 13, exactly half the penalty associated with Musk.
This resulted in a net favorability score of minus 13, which is exactly half the penalty associated with Musk’s name. This shows that while European car buyers are typically portrayed as reluctant regarding Chinese-made cars, in reality, there is a much broader spectrum of opinions.
It complicates the assumption that Chinese state influence is the biggest obstacle facing brands such as BYD in Europe. It’s still undeniably a meaningful concern, but the survey suggests the Tesla boss’ leadership direction and political associations actually carry a heavier burden.
Musk’s image was negative across every major EU market included in the report. His favorability ranged from minus 17 in Poland to minus 48 in the Netherlands, with Germany at minus 42 and France at minus 41. Overall, 58% of survey participants held an unfavorable opinion of Musk, compared with 27% who viewed him positively.
Tesla’s improving European sales performance challenges this apparent negative sentiment toward the brand, though. Sales on the continent took a nosedive after Musk’s political foray, but Reuters now reports that the company’s registrations are rebounding, helped by incentives, higher fuel prices and easier year-over-year comparisons.
Even though Tesla sales are on the upswing in Europe, July results varied dramatically by market: year-over-year registrations rose 86% in France and 52% in Denmark, while falling 97% in Norway, 81% in Spain, 77% in Italy, 69% in Portugal and 60% in Sweden. Tesla’s apparent focus on markets with stronger incentives may also partly explain some of those swings; it’s hard to quantify how much Musk’s reputation affected the monthly data.
BYD, meanwhile, even with its apparent rapid expansion, remains largely unknown in much of Europe; it’s nowhere near Tesla’s level of recognition. But when respondents were asked to choose between similarly priced vehicles from the two brands, the results were nearly even: 29% chose Tesla and 27% chose BYD. Among consumers considering an EV, BYD actually led Tesla by 40% to 36%.