- According to data from car-shopping site Edmunds, this month is on pace to set a new record high in Tesla owners trading in their electric vehicles. That’s as CEO Elon Musk has taken on a high-profile role in the Trump administration, leading an effort to slash federal payrolls and sparking a massive backlash against the EV brand.
March is on pace to set a new record high in Tesla owners trading in their electric vehicles, according to data from car-shopping site Edmunds.
Through the first half of the month, Teslas from model year 2017 or later made up 1.4% of all the vehicles traded in, excluding trade-ins toward new purchases of Teslas and EVs from other direct-to-consumer brands. That’s more than triple the 0.4% rate from a year ago and up from 1.2% in February as well as 0.8% in January.
In fact, over the past year, the Tesla trade-in rate has been climbing. For most of the first half of 2024, it sat at 0.4%, then crept up to 0.5%-0.6% over the summer, before hitting 0.7% by the end of the year, according to the Edmunds data.
The upward trend coincided with Musk donating hundreds of millions of dollars toward Donald Trump’s re-election bid, then becoming an advisor in his administration while his Department of Government Efficiency (DOGE) has slashed federal payrolls and accessed sensitive government data.
The backlash against Musk has become so severe that protests have erupted at Tesla showrooms, and vandals have even started setting Tesla vehicles on fire.
In addition, sales of Tesla cars are collapsing in Europe as Musk interjects himself in national elections and becomes more closely associated with Trump’s policies. And Tesla’s stock price has crashed about 50% from its mid-December high.
Once-steadfast Tesla bulls on Wall Street are also pleading with Musk to step away from DOGE as Tesla suffers a “brand tornado crisis moment.”
Jessica Caldwell, Edmunds’ head of insights, said in a statement that “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.”
Data also shows shopping consideration on Edmunds for new Teslas dropped to 1.8%, the lowest since October 2022, and down from a peak of 3.3% as recently as November.
Tesla didn’t immediately respond to a request for comment.
To be sure, Tesla owners are also trading in their cars for used Teslas, and trade-ins of other EV brands are increasing, too. But that’s because sales of other EVs are also up, with no significant trade-in spikes, Edmunds spokesman Mitch Paul told Fortune via email.
The data also points to rival EVs that could be benefiting from anti-Musk sentiment. According to Edmunds, 4.2% of Tesla trade-ins that were involved in purchases toward new vehicles at traditional dealerships were used to purchase a new BMW i4. Meanwhile, 4% were used to buy a new Hyundai Ioniq 5, and another 4% were used for a new Ford Mustang Mach-E.
“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 wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”
This story was originally featured on Fortune.com
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