Tesla Trade-Ins Skyrocket Amidst Growing Public Disapproval of Musk

A significant increase in Tesla trade-ins has been recorded this month, according to Edmunds. By mid-March, 1.4% of all trade-ins consisted of 2017 or newer Tesla models, a substantial rise from 0.4% in March 2023. Analysts attribute this uptick partly to public backlash against Elon Musk’s association with Donald Trump.

If current trends continue, March is expected to see a record high for Tesla trade-ins at dealerships, reaching 1.4% of total vehicles. This rate surpasses February’s 1.2% and does not include trade-ins made toward new Teslas or electric vehicles (EVs) from direct-to-consumer brands. The increase comes amidst protests against Musk’s involvement in the Trump administration, particularly regarding workforce reductions and cuts to humanitarian funding.

Tesla owners in the U.S. and parts of Europe have taken to social media to showcase their vehicle trade-ins, expressing their anger towards Musk. This previously unreported data for March highlights a growing concern over brand loyalty, with Edmunds citing Musk’s government involvement, worries about depreciation, and market saturation as factors contributing to customer dissatisfaction.

Following a slight dip in 2024, Tesla anticipates vehicle sales growth this year, even as used Tesla prices decline along with other EVs, with Edmunds forecasting further decreases. This economic pressure coincides with public outrage against the brand, resulting in incidents of arson and vandalism, prompting Trump to threaten to classify these actions as domestic terrorism. Tesla’s stock, which initially surged after the election, has since fallen sharply.

Fred McKinney, a corporate consultant, publicly traded in his Tesla to express his disapproval of Musk. McKinney stated that he chose to trade in his vehicle instead of using a bumper sticker to voice his frustrations and encouraged others to avoid Tesla EVs. This sentiment is reflected in Edmunds data, which shows that consumer consideration for new Teslas dropped to a low of 1.8% last month.

Additionally, Cox Automotive estimates indicate a 10% sales decline for Tesla in February. Edmunds analysts suggest that this shift in consumer sentiment creates an opportunity for competitors, who can capitalize on Tesla’s declining brand loyalty by offering competitive pricing, innovation, or a less controversial image.