Tesla Losing Drivers As Owners Trade In Their EVs At Record Levels

Elon Musk's Tesla brand is facing continued setbacks as owners trade in their vehicles at unprecedented rates.

Tesla’s reputation is taking a sharp hit, with new data revealing that owners are trading in their vehicles at record levels since CEO Elon Musk joined Donald Trump’s administration.

Edmunds data reveals that March recorded “the highest-ever share” of Tesla trade-ins for new or used vehicles from dealership-sold brands, CNBC reports. Data from the national car shopping site signals a shift for Tesla, which dominated the electric vehicle market until Musk joined the White House in January.

“Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground,” said Jessica Caldwell, head of insights at Edmunds.

Musk has faced intense public scrutiny since arriving in Washington, D.C., in January as a key figure in Trump’s second administration. As head of the Department of Government Efficiency (DOGE), he has overseen deep cuts to the federal workforce and government spending while also securing access to sensitive government computer systems and data—moves that have sparked multiple legal challenges.

Musk’s close ties to the President—whom he spent $290 million to help elect—have sparked intense backlash against him and Tesla. Recently, Tesla stores, vehicles, and charging stations have been targeted by vandalism and arson.

Things aren’t looking any better on the stock market. While investors initially flocked to Tesla shares following Trump’s victory in November, they’ve been rapidly selling off in recent months, driving the stock down 42% this year. Meanwhile, the company faces growing competition in the EV market—S&P Global Mobility reported an 11% year-over-year drop in Tesla’s U.S. sales this January, while Ford, Chevrolet, and Volkswagen gained market share with rising EV sales.

“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,” Caldwell said.

Edmunds reported that interest in new models on its platform hit its lowest point last month since October 2022, following a peak in November. Even before Musk took charge of DOGE, Tesla’s brand was already struggling—its value dropped by 26% (approximately $15 billion) in 2024, marking the second consecutive year of decline, according to Brand Finance.