Tesla owners are trading in their electric vehicles (EVs) at unprecedented rates, largely due to backlash against CEO Elon Musk’s connections with the Trump administration.
According to Edmunds, March saw the highest share of Tesla trade-ins ever recorded, with many owners opting for new or used cars from other brands.
Musk, who leads Tesla, has been instrumental in slashing the federal workforce and government spending as part of the Department of Government Efficiency (DOGE). Before assuming this role, Musk spent $290 million to support President Donald Trump’s re-election bid. However, this political alignment has alienated many Tesla owners and investors.
Investors who initially bought Tesla shares following Trump’s victory are now selling, resulting in a 42% decline in Tesla’s stock price this year. The backlash has also sparked protests targeting Tesla facilities across the U.S. and beyond, with incidents of vandalism and arson reported at Tesla stores, vehicles, and charging stations.
Tesla trade-ins on pace for record high amid Musk backlash https://t.co/EeBruDIPzN
— Yahoo News (@YahooNews) March 21, 2025Increased Competition in the EV Market
Tesla is facing growing competition from legacy automakers and EV startups. Brands like Ford, Chevrolet, and Volkswagen are gaining market share, offering competitive pricing and innovative technology. Jessica Caldwell, head of insights at Edmunds, told NBC, “Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground.”
Read: Trump Buys Tesla Model X Amid Tariffs and Market Turmoil
The Tesla brand is closely tied to Elon Musk, with Edmunds’s surveys revealing that only 2% of U.S. car shoppers were unfamiliar with him in August 2024. However, according to Brand Finance, Tesla’s brand value has declined, falling by 26% (approximately $15 billion) in 2024, marking a second consecutive annual drop.
Edmunds data shows that shopping for new Tesla models on its platform dropped to its lowest level last month since October 2022. While many Tesla owners trade in their EVs for newer models, Edmunds’s data does not account for these transactions, suggesting the overall trend may be even more pronounced.
