As Elon Musk wraps up his second month in the White House, Tesla owners are trading in their electric vehicles at record levels, according to an analysis by national car shopping site Edmunds.
The data from Edmunds published on Thursday said that March represented "the highest ever share" it had seen for Tesla trade-ins toward new or used cars from dealerships selling other brands.
Since heading to Washington, D.C., in January as a central figure in the second Trump administration, Musk, who is CEO of Tesla, has been slashing the federal workforce and government spending, and has gained access to sensitive government computer systems and data, though his efforts have been repeatedly challenged in court.
Before assuming leadership of the so-called Department of Government Efficiency, or DOGE, Musk spent around $290 million last year to help propel President Donald Trump back to the White House.
While investors snapped up Tesla shares after Trump's victory in November, they've been rushing for the exits of late, pushing the stock's price down by 42% this year. Waves of protests have targeted Tesla facilities in the U.S. and beyond. Other criminal acts of vandalism and arson have targeted Tesla stores, vehicles and charging stations across the U.S.
In addition, Tesla is facing increased competition from EV makers. In January, S&P Global Mobility found Tesla sales declined about 11% year over year in the U.S., while Ford , Chevrolet and Volkswagen bolstered their sales of EVs, picking up market share.
"Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground," Jessica Caldwell, head of insights at Edmunds, wrote in an email. "As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers."
The Tesla brand, more than that of any other automaker, is tightly tied to its CEO. In August 2024, Edmunds surveys found that just 2% of car shoppers in the U.S. were unfamiliar with Musk.
Edmunds also said that shopping for new models of Tesla vehicles on its platform dropped to its lowest level last month since October 2022 after peaking as late as November.
Even before Musk began heading up DOGE, Tesla's brand was suffering. Its brand value fell by 26%, or about $15 billion, in 2024, a second straight annual decline, according to research and consulting firm Brand Finance.
Many car shoppers trade in their Tesla EVs for a newer model Tesla. Edmunds data didn't account for those transactions.
Tesla didn't immediately respond to a request for comment.
HeinrichTheWolf_17 on March 21st, 2025 at 12:36 UTC »
People trading in their Teslas hurts Elon, because even if the brand doesn’t collapse, it’ll be harder to sell new models because the used surplus will be so huge that the prices will collapse fast on new releases, nobody is going to buy a new model on release year when they can just buy the last years model for a portion of the price when the demand sinks that low.
And that’s if the company manages to persist into the future.
jawndell on March 21st, 2025 at 11:58 UTC »
The people I know who bought Teslas were well off yuppies, liberal and who cared about the environment (mean that in the best way possible). Teslas are not cheap and the people who bought them did so instead of something like a BMW or Range Rover. I myself was considering one before I went for a BMW.
Tesla was like the Apple brand of the car world.
And Elon just antagonized that entire base. Those same folks are embarrassed by their purchase now.
KalEl1232 on March 21st, 2025 at 11:31 UTC »
I had one of the first 600 Tesla Model Ys. With taxes, etc., it came out to a pretty penny (north of $60k). It was a fun, engaging car and whoo boy that acceleration was bonkers.
Then the reality set in. I kept trying to push through the inconveniences but damned if they didn’t add up quickly. To whit:
1.) A software update meant to improve the positional accuracy of the map bricked - get this - the A/C system. In the summer. It was literally a guessing game whether the A/C would turn on when I got in the car. Persisted for about 3 months before a patch was rolled out.
2.) The vaunted heat pump quit twice, once in winter (as we were moving across the country). Only a threat of litigation got the service center to replace the unit. Replacing it took the service center nearly a week.
3.) A simple windshield replacement was needed after a rock caused a crack that started spreading. I scheduled service (soonest I could get a spot was 4 weeks out) which got delayed an additional whole month because “Our glass guy is sick,” and yet another whole month because “We don’t have glass.”
4.) At 4 years of ownership, it was found that elements of the sub-frame were developing soon-to-be catastrophic cracks. No, I didn’t rally race it. Yes, I was religious about washing road salt off of it in wintertime. The upper control arm bushing was also “shredded” according to Firestone.
After #4 happened, I drove to a dealership that literal same day and traded it in.