Tesla Owners Are Ditching Their EVs at Record Rates, Edmunds Says

Tesla Trade-Ins Are Spiking—And Politics Might Be a Factor

Elon Musk has been in Washington for just two months, and something big is already happening—Tesla owners are walking away from their EVs at an unprecedented rate.

New data from Edmunds reveals that March recorded the highest share of Tesla trade-ins ever, with many customers opting for rival brands at traditional dealerships. The numbers suggest a shift in consumer loyalty, and let’s be honest—Musk’s latest political moves might have something to do with it.

Since taking charge of the newly created Department of Government Efficiency (DOGE) in January, Musk has made headlines for slashing federal jobs, cutting government spending, and gaining access to sensitive data—moves have sparked praise and outrage. His legal battles are piling up, and his deep ties to Trump’s administration have made Tesla more polarizing than ever.

Meanwhile, Tesla stock is taking a beating. Musk spent $290 million last year to help Trump return to the White House, and while investors initially cheered the election results, reality has set in. Tesla shares have tanked 42% this year as uncertainty grows.

Backlash, Competition, and a Shifting EV Market

The trouble isn’t just on Wall Street. Protests, vandalism, and even arson have targeted Tesla stores, charging stations, and factories nationwide. Some former die-hard Tesla fans are cutting ties for political reasons or simply frustration with the brand.

At the same time, the competition is getting stronger. S&P Global Mobility reports that Tesla’s U.S. sales dropped 11% year over year in January, while competitors like Ford, Chevrolet, and Volkswagen picked up market share. Legacy automakers and EV startups are fully exploiting Tesla’s growing image problem.

“This is a prime opportunity for brands that offer competitive pricing, new technology, or just… less controversy,” said Jessica Caldwell, head of insights at Edmunds.

Tesla’s entire brand is inseparable from Musk, for better or worse. Last year, Edmunds found that only 2% of U.S. car shoppers didn’t know who Musk was. That’s unheard of for any automaker. But lately, that strong association is backfiring.

Edmunds data shows that searches for new Tesla models have plummeted to their lowest level since October 2022. Even before Musk took charge at DOGE, Tesla’s reputation was on shaky ground—its brand value fell 26% in 2024, a $15 billion loss, according to Brand Finance.

Plenty of Tesla owners are still sticking with the brand, trading in older models for newer ones. Edmunds’ report doesn’t account for those swaps.

For now, Tesla hasn’t responded to requests for comment.

More from AboutEVS

Renault Appoints Josep Maria Recasens as CEO of its Electric Vehicles unit Ampere

BYD Overtakes Tesla Revenue as EV Battle Heats Up

The Biggest Electric Vehicle (EV) Launches and Innovations Coming in 2025

BYD’s 5-Minute Charging EVs Are Changing the Game

Car Steering and Braking Are Going Digital— What That Means for You?

BYD’s 30,000 RPM Electric Motor Breaks New Ground

Please sign up for our newsletter and never miss any EV Updates, Blogs, EV news, and Articles.

It’s FREE!

Badal Banjare

Hey, I’m Badal I enjoy writing blogs, articles, and engaging content for websites. Creativity is at the heart of everything I do, whether it’s coding, designing, music, or crafting compelling content. I hope you enjoy reading my blogs and articles as much as I enjoy creating them!