Tesla owners appear to be impacting the used car market as they ditch the brand, causing a drop in prices, according to sales data.
It comes as Elon Musk‘s growing political power as the head of the Department of Government Efficiency and as one of President Donald Trump‘s closest advisers has coincided with a drop in Tesla stock and sales.
Newsweek contacted Tesla for comment via email.
Why It Matters
Elon Musk’s net worth is closely tied to Tesla’s stock, but the company’s value has declined for the last two weeks, as Musk ramps up his political activity in the Trump administration. The backlash to Tesla is both financial and cultural, with vandalism and protests against the car company becoming a symbol for protests against Musk and Trump.
What To Know
According to market tracking site CarGurus, Teslas are now the most common electric vehicles on the used car market. This has meant that the cost of a used Tesla has also declined, with the average price of a used Tesla now being $10,000 less than a car of a different brand.
In 2024 Hertz had 30,000 Teslas listed for sale. According to U.S. News & World Report, there are currently over 14,000 used Teslas for sale in the U.S, the majority of which are selling for around $30,000. By contrast, in 2022, the average cost of a used Tesla was $70,000, a decline which has coincided with Musk’s increasing political activity, according to Business Insider.
San Francisco, where many of the largest tech companies in the U.S. are based, has also emerged as a hub for others looking to part ways with their Tesla.
“I got my Tesla in March of last year, before I knew Elon was crazy,” one owner told the San Francisco Chronicle, who swapped his Model 3 for a BMW, despite still owing thousands on the three-year lease.
San Francisco dealerships at both Audi and Mercedes both reported an increase in Tesla trades, with Andy Hansen, the chief operating officer at Audi San Francisco, saying: “We definitely have seen a big uptick in people wanting to trade in their Teslas,” with his dealership reporting 5 Tesla trades a week, with more on the way.
Tennessee singer Sheryl Crow announced that she had let her Tesla go, saying in a statement: “My parents always said … you are who you hang out with. There comes a time when you have to decide who you are willing to align with. So long Tesla.”
Crow donated the money raised to National Public Radio (NPR), which she described as “under threat by President Musk, in hopes that the truth will continue to find its way to those willing to know the truth.”
A global backlash against Tesla has emerged as Trump and Musk both turned their eye beyond U.S. borders, most notably toward Europe.
Following Musk’s intervention over the German election, Europe has reduced its demand for Tesla. Registrations have declined more than 40 percent in the Netherlands, Sweden, Denmark, and Norway over the past year, and Spain witnessed the steepest decline of 75 percent in the same period.
Additionally, Germany has become the source of several protests linking Musk to the Nazi party, after his gestures at Trump’s inauguration were compared to Nazi “Roman” salutes. One factory in Germany even had “Heil Tesla” projected on its side by protesters.
A study from the Netherlands found that 30 percent of Tesla owners were considering getting rid of their vehicles, with Elon Musk’s personal reputation being cited as the number one reason behind the decision.
“Musk abuses his power, one testimony for the research company, EenVandaag, said. “If I had known what he is like now, I would never have bought a Tesla.”
What People Are Saying
In response to the criticisms of his gesture, Elon Musk said on X: “Frankly, they need better dirty tricks. The ‘everyone is Hitler’ attack is sooo tired. The radical leftists are really upset that they had to take time out of their busy day praising Hamas to call me a Nazi.”
President Donald Trump, discussing his move to make violence against Tesla a terrorism charge, said: “I will do that. I’m going to stop them. Because they are harming a great American company. It’s a great product, and we have to celebrate [Musk].”
What Happens Next
Developments could depend on how long Musk continues in his role as head of the Department of Goverment Efficiency, while also being CEO of Tesla, and whether he keeps attempting to influence foreign elections.
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