The number of Tesla owners trading in their cars surged to a record high in March, compounding the troubles of an automaker that has been embroiled in controversy since CEO Elon Musk became a central figure of President Donald Trump’s administration.
Get a curated selection of 10 of our best stories in your inbox every weekend.
Of all vehicles traded in at dealerships for new or
used cars through March 16, 1.4 percent were Tesla cars from model year 2017 or newer — the highest share on record, according to data from U.S. car shopping website
Edmunds, which analyzed purchases at traditional dealerships (but not direct-to-consumer brands). The data shows a steady increase: Last March, 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 comes as Musk faces backlash for his role in dramatic cuts to the federal government through the U.S. DOGE Service. Protesters have
vandalized cars and storefronts at Tesla facilities across the country and set Tesla charging stations ablaze, among other violent and destructive acts.
Advertisement
Trump on Friday
threatened vandals of Tesla cars with 20-year sentences in El Salvador’s
infamous mega-prison, after Attorney General Pam Bondi earlier this week said attacking Teslas was “
domestic terrorism.”
Musk’s company has faced declining stock price and consumer boycotts since the start of the year. Tesla’s stock, which peaked at around $480 per share in December, closed Thursday at $236.26 per share. In January, Tesla sales in Europe
sank 45 percent compared to the previous year.
Some Tesla owners have also
begun to express buyer’s remorse, fearing their car signals to others that they support Musk, one of the most powerful right-wing political figures in the United States.
Jessica Caldwell, head of insights for Edmunds, said Musk’s reputation may be one of the reasons for 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 have begun to explore their options. Searches for used Teslas in February
fell 16 percent from the previous month and 7 percent from the previous year, signaling that consumers are considering other electric vehicles, according to a February report from
Cars.com.
iowa.rivals.com
