Tesla owners have been trading in their electric vehicles at record levels since Elon Musk joined the White House, according to an analysis by national car shopping site Edmunds. The data shows that March represented the highest ever share of Tesla trade-ins toward new or used cars from dealerships selling other brands.
The trend suggests that shifts in consumer sentiment could create opportunities for legacy automakers and electric vehicle (EV) startups to gain ground. Jessica Caldwell, head of insights at Edmunds, noted that as Tesla brand loyalty wavers, those offering competitive pricing, new technology, or less controversy could capture defecting Tesla owners and first-time EV buyers.
Tesla’s brand value has been declining since Musk took the helm, falling by 26% in 2024 alone. The company’s stock price has also taken a hit, dropping 42% this year. The decline is partly due to increased competition from other EV makers, including Ford, Chevrolet, and Volkswagen, which have gained market share.
As Musk wraps up his second month in the White House, it remains to be seen how his tenure will impact Tesla’s fortunes. However, one thing is clear: the company’s brand is closely tied to its CEO, and any changes in consumer sentiment could have significant consequences for the business.
Source: https://www.cnbc.com/2025/03/20/tesla-owners-are-trading-in-their-evs-at-record-levels-edmunds-says.html