Record-High Trade-Ins Linked to Musk’s Political Ties
A growing number of Tesla owners are trading in their vehicles, setting a record-high trend this month, according to data from automotive research firm Edmunds. The spike in trade-ins coincides with increasing protests against Tesla CEO Elon Musk’s advisory role in the administration of U.S. President Donald Trump.
From March 1 to March 15, Tesla models from 2017 or later accounted for 1.4% of all vehicles traded in at dealerships—up significantly from 0.4% during the same period last year. In February, Tesla trade-ins reached 1.2%, reflecting the rising discontent among owners. If this trend continues, March will mark the highest monthly share of Tesla trade-ins on record.
The figures exclude Tesla vehicles exchanged for new Teslas or electric vehicles from direct-to-consumer brands. Analysts attribute the surge to multiple factors, including Musk’s political affiliations, concerns over Tesla’s depreciating value, and increasing market saturation.
Public Outrage Fuels Market Shifts
Elon Musk leadership in the Trump administration’s Department of Government Efficiency has sparked outrage, leading to Tesla-related protests across the U.S. Known as “Tesla Takedown” demonstrations, these protests highlight concerns over Musk’s involvement in federal budget cuts and the cancellation of humanitarian aid programs.
Social media is flooded with posts from former Tesla owners in the U.S. and Europe showcasing their decision to give up their vehicles in protest. Some owners have even resorted to extreme measures, such as setting their Teslas on fire or vandalizing company showrooms and charging stations.
Jessica Caldwell, head of insights at Edmunds, noted that Tesla’s once-loyal customer base is beginning to waver. “Brand loyalty is becoming a bigger question mark as factors such as Elon Musk’s increasing public involvement in government, Tesla depreciation concerns, and its increased saturation in major metro areas leave some longtime owners feeling disconnected from the brand,” she said.
Despite the growing backlash, Tesla has not issued an official response. However, the company has maintained that it expects its vehicle business to resume growth after a slight decline in 2024.
Impact on Tesla’s Sales and Market Position
The surge in Tesla trade-ins comes amid a broader decline in the company’s market position. Used Tesla prices have fallen alongside other EVs from brands like Ford, Kia, and Hyundai. Edmunds analysts predict further price drops as a flood of traded-in Teslas enter the used car market.
Additionally, consumer interest in new Tesla purchases has dropped to 1.8%—the lowest level since October 2022—after peaking at 3.3% in November. Estimates from Cox Automotive indicate that Tesla sales likely fell by 10% in February, with declines across its popular models, including the Cybertruck, Model 3, and Model Y.
The decline in consumer sentiment presents an opportunity for competitors. “These shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground,” Caldwell said. “As Tesla brand loyalty and interest waver, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”
Meanwhile, Tesla stock has nearly halved from its January peak, a stark contrast to the surge it experienced after Trump’s election in November. Some former Tesla owners, like corporate consultant Fred McKinney, have made their stance clear. “I thought about putting a bumper sticker on my car saying, ‘I hate Elon Musk .’ But selling the car feels so much better,” he posted on LinkedIn.
