Tesla trade-ins on pace for record high amid Musk backlash
Tesla cars from model year 2017 or newer accounted for 1.4% of all the vehicles traded in until 15 March, up from 0.4% in March last year
Highlights:
- Tesla brand loyalty questioned due to Musk's government involvement
- Tesla backlash may create opportunity for competitors
Motorists have traded in a record number of Tesla electric vehicles this month, Edmunds data showed, amid a wave of protests against CEO Elon Musk's work as an adviser to US President Donald Trump.
Tesla cars from model year 2017 or newer accounted for 1.4% of all the vehicles traded in until 15 March, up from 0.4% in March last year, according to data provided to Reuters by Edmunds. Analysts at the national car shopping website said that share could grow through the second half of the month.
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In February, the Trump administration's first full month, Teslas made up 1.2% of vehicles traded in.
March's trade-ins so far would be the highest monthly share Edmunds has on record of Tesla trade-ins toward new or used purchases at dealerships, if the trend continues. This excludes trade-ins toward new purchases of Teslas and EVs from other direct-to-consumer brands.
Musk is leading the Trump administration's Department of Government Efficiency and activists across the US have staged so-called Tesla Takedown demonstrations over his role in cuts to the federal workforce and cancellation of contracts that fund global humanitarian programs.
Social media has been rife with posts from Tesla owners in the US and some European countries showing them giving up their vehicles in displays of anger toward Musk.
The March data on Tesla trade-ins has not been previously reported.
"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," said Jessica Caldwell, Edmunds' head of insights.
Spokespersons for Tesla and Musk did not immediately respond to requests for comment.
Tesla has said it expects the vehicle business to return to growth this year, after a small drop in 2024.
Prices of used Teslas have dropped in line with other EVs from Ford, Kia and Hyundai, according to Edmunds.
Used Tesla prices will likely decline further as Tesla trade-ins that are undergoing reconditioning reach the market, Edmunds analysts said.
Anger against the brand has resulted in Tesla vehicles being set on fire and damage to the company's showrooms and charging stations.
Trump has said he would label such attacks as domestic terrorism.
Tesla stock, which skyrocketed since Trump's election in November on hopes it would be easier for the company to roll out robotaxis under the new administration, has nearly halved from its January peak.
Fred McKinney, a corporate consultant, traded in his 2018 Tesla Model 3 last month to show his disapproval of Musk.
"I thought about putting a bumper sticker on my car saying, 'I hate Musk.' But selling the car feels so much better," he said on a LinkedIn post. "If you are considering a new EV, under no circumstances consider buying a Tesla."
Data from Edmunds also showed shoppers' consideration of new Teslas dropped to 1.8% last month - the lowest level since October 2022 - after peaking at 3.3% in November.
Tesla's sales likely fell 10% in February, hurt by declines in its Cybertruck pickup, Model 3 sedan, and Model Y SUV, separate estimates from market research firm Cox Automotive showed on Thursday.
"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."
