Tesla is experiencing an unprecedented surge in trade-ins, as data indicates a growing number of owners are exchanging their vehicles for other brands. This trend coincides with mounting public dissent against CEO Elon Musk’s involvement in the Trump administration and his role as head of the Department of Government Efficiency (DOGE).
According to data from Edmunds, Tesla vehicles from model year 2017 or newer accounted for 1.4% of all trade-ins up to March 15, 2025, a significant increase from 0.4% during the same period last year. Notably, these trade-ins were directed toward purchases of non-Tesla vehicles, signaling a shift in brand loyalty.
Jessica Caldwell, head of insights at Edmunds, commented, “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.”
In addition to the rise in trade-ins, consumer interest in new Tesla models has declined. Edmunds reported that shopper consideration for new Teslas dropped to 1.8% in February 2025, the lowest level since October 2022, down from a peak of 3.3% in November 2024.
The backlash against Musk’s political involvement has manifested in public protests and acts of vandalism. For instance, approximately 300 protesters gathered outside a Tesla showroom in Milford, Connecticut, expressing opposition to Musk’s role in the Trump administration and DOGE. The demonstration addressed issues such as mass firings of federal workers and cuts to diversity and inclusion initiatives.
Tesla’s stock has been affected by these developments, experiencing a ninth consecutive weekly decline despite a recent 5.3% increase, closing at $248.71. Investors are concerned about lower-than-expected first-quarter delivery estimates and diminishing consumer interest. Analysts suggest that Musk’s political engagements are contributing to a “dark brand crisis tornado” for Tesla.
The shift in consumer sentiment presents opportunities for other automakers. Caldwell noted, “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.”
Tesla faces challenges in retaining customer loyalty amid political controversies surrounding its CEO. The company’s ability to address consumer concerns and adapt to the evolving market landscape will be crucial in maintaining its position in the electric vehicle industry.
Also Read: Tesla Struggles as Musk’s Politics Weigh on Stock Decline
