Tesla trade-ins spike amid anti-Elon Musk backlash, Edmunds data shows
Motorists appear to be eager to part ways with their Tesla vehicles, with Tesla trade-ins reaching a record high this month, according to data from Edmunds. The rise in exchanges comes amid attacks on Tesla cars and dealerships taking place across the country as people protest Elon Musk's role within the Trump administration.
In March, the highest share ever of Teslas from model year 2017 or newer were traded in toward new or used purchases at dealerships, according to Edmunds, a U.S. car shopping website. Notably, the trade-ins were not used toward purchases of new Teslas. The Tesla EVs accounted for 1.4% of all vehicles traded in until March 15, marking a 0.4% rise from a year ago.
Edmunds' data also indicates a dip in customers eyeing Teslas, based on browsing data on its website.
In February, buyer interest in new Teslas dropped to 1.8%, its lowest point since October 2022. The number of car shoppers interested in purchasing the cars had peaked in November 2024, at 3.3%.
"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," Edmunds' head of insights Jessica Caldwell said in a statement to CBS MoneyWatch.
She noted that diminished consumer sentiment around Tesla could present an opportunity for its competitors to gain market share.
"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.
Wedbush Securities technology analyst Dan Ives, a longtime Tesla bull, has also warned that Musk's political actions are an "overhang" on the company's stock, and that the company is in the midst of a "dark brand crisis tornado" that only Musk himself can fix.
Ives said that investors are not asking Musk to divorce himself from the Trump administration, or from the Department of Government Efficiency, which he's leading, but "for balance as Tesla CEO and DOGE in this key period for Tesla."
