The number of Tesla owners trading in their cars reached a record high in March, adding to the challenges faced by an automaker that has been embroiled in controversy since CEO Elon Musk became a central figure in President Donald Trump’s administration.
According to data from U.S. car shopping website Edmunds, which analyzed purchases at traditional dealerships (excluding direct-to-consumer brands), 1.4 percent of all vehicles traded in at dealerships for new or used cars through March 16 were Tesla cars from model year 2017 or newer — marking the highest share on record. This represents a steady increase: Last March, only 0.4 percent of all vehicles traded in were Teslas. The figure rose to 0.8 percent in January and 1.2 percent in February.
The rise in trade-ins coincides with backlash against Musk for his role in significant cuts to the federal government through the U.S. DOGE Service. Across the country, protesters have vandalized Tesla cars and storefronts, set charging stations ablaze, and engaged in other violent acts. President Trump recently threatened vandals of Tesla cars with 20-year sentences in El Salvador’s infamous mega-prison, following Attorney General Pam Bondi’s statement labeling attacks on Teslas as “domestic terrorism.”
Since the start of the year, Musk’s company has faced a declining stock price and consumer boycotts. Tesla’s stock, which peaked at around $480 per share in December, closed at $236.26 per share on Thursday. In January, Tesla sales in Europe dropped by 45 percent compared to the previous year.
Some Tesla owners have expressed buyer’s remorse, fearing their car signals support for Musk, one of the most powerful right-wing political figures in the U.S. Jessica Caldwell, head of insights for Edmunds, suggested Musk’s reputation might be contributing to the increase in trade-ins.
“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.
As more carmakers enter the electric vehicle market, consumers are exploring their options. Searches for used Teslas fell 16 percent in February compared to the previous month and 7 percent from the previous year, indicating that consumers are considering other electric vehicles, according to a February report from Cars.com. The report noted there are now 76 models of used electric vehicles on the market this year, up from 58 a year ago. Meanwhile, searches for non-Tesla electric vehicles on Cars.com increased by 28 percent over the past year.
David Greene, an analyst with Cars.com, remarked, “What we’re seeing in the marketplace is just fragmentation that is very normal. Tesla enjoyed exclusivity and market dominance for quite a long time, but other automakers are getting into the EV space.”
Greene remains skeptical that the available market data reflect a significant consumer backlash against Tesla, noting that shifts in behavior can be slow to emerge in buyer interest, trade-in, or sales data: “The market can shift on a dime, but the data is always lagging.”
The share of people considering buying a new Tesla has also decreased, according to Edmunds. In February, only 1.8 percent of car shoppers on the Edmunds site were considering purchasing a new Tesla, the lowest proportion since October 2022. This figure peaked at 3.3 percent in late November 2024.
When consumers trade in a Tesla, most are purchasing electric or hybrid models as their next car, according to Edmunds. Caldwell commented, “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.”
— news from The Washington Post