Tesla (TSLA+4.00%) owners are ditching their vehicles in record numbers, as consumer interest in the brand appears to be waning.
New data from the U.S. car-shopping site Edmunds points to a growing shift in consumer sentiment toward Tesla, a brand closely tied to its controversial CEO, Elon Musk. The share of shoppers considering a new Tesla on Edmunds has fallen to 1.8% — its lowest level since October 2022. The site attracts more than 20 million visits each month.
At the same time, Tesla trade-ins for 2017 or newer models hit their highest recorded share at dealerships this month. This figure does not include owners trading in their Teslas for another Tesla or for vehicles from other direct-to-consumer brands.
Through March 16, Teslas made up 1.4% of all trade-ins — a sharp jump from 0.4% a year ago — and that number could rise even further through the rest of the month.
“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,” said Jessica Caldwell, Edmunds’ head of insights, in a statement.
She added that the trend could create an opportunity for legacy automakers and EV startups to “gain ground.”
Musk acknowledged the trouble his EV giant has had in recent months during an all-hands meeting on Thursday.
“If you read the news, it feels like Armageddon,” Musk said, referencing recent attacks on Tesla dealerships.
Tesla stock is down roughly 2% this week and has plunged 33% over the past month — and by more than half from its all-time high in mid-December. The selloff has erased billion of dollars from Musk’s net worth, about 60% of which is tied to Tesla shares and options.
And the wipeout comes as Musk — by his own admission — has struggled to balance his role as Tesla’s chief executive while leading several other companies and the Trump administration’s Department of Government Efficiency, or DOGE. Some analysts suggest Musk’s close ties to President Donald Trump have also contributed to Tesla’s woes.
“If you agree or disagree with DOGE it misses the point that by Musk spending 110% of his time with DOGE (and not as Tesla CEO) since President Trump got back into the White House this has essentially turned Tesla into a political symbol…. and this is a bad thing,” Wedbush Securities analyst Dan Ives, a prominent Tesla bull, wrote in a Wednesday note to investors.
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