As Elon Musk completes his second month in the White House, Tesla owners are trading in their electric vehicles at record levels, with March showing the highest ever share of Tesla trade-ins toward new or used cars from dealerships selling other brands, according to Edmunds. Since joining the Trump administration, Musk has been reducing the federal workforce, cutting government spending, and receiving access to sensitive government data, although his efforts have faced legal challenges. Despite Musk’s previous support for Trump’s re-election, Tesla’s stock price has plummeted by 42% this year, leading to protests, vandalism, and arson targeting Tesla facilities and vehicles.
Tesla is also facing increased competition from other EV makers such as Ford, Chevrolet, and Volkswagen, who have expanded their sales of electric vehicles. This competition, combined with shifting consumer sentiment towards Tesla, may provide opportunities for other automakers to gain market share. The Tesla brand is closely associated with Musk, and as brand loyalty wavers, competitors offering competitive pricing and new technology could attract defected Tesla owners and first-time EV buyers.
The decline in Tesla’s brand value has been noted since 2024, with Edmunds reporting a decrease in shopping for new Tesla models on its platform. Despite these challenges, many Tesla owners still trade in their EVs for newer Tesla models, although this data was not accounted for by Edmunds. Tesla did not provide a comment on the analysis.
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