Tesla Trade-Ins Reach Record High Amid Protests Against Elon Musk’s Government Role
Tesla Trade-In Surge
Motorists have traded in a record number of Tesla electric vehicles this month, according to data from Edmunds, as a wave of protests against CEO Elon Musk’s work as an adviser to U.S. President Donald Trump continues to grip the nation.
Data Reveals Alarming Trend
Tesla cars from model year 2017 or newer accounted for 1.4% of all the vehicles traded in until March 15, up from 0.4% in March last year, according to data provided to Reuters by Edmunds. Analysts at the national car shopping website say that share could grow through the second half of the month.
Protests Intensify
Musk is leading the Trump administration’s Department of Government Efficiency, and activists across the U.S. have staged so-called Tesla Takedown demonstrations over his role in cuts to the federal workforce and cancellation of contracts that fund global humanitarian programs. Social media has been rife with posts from Tesla owners in the U.S. and some European countries showing them giving up their vehicles in displays of anger toward Musk.
Brand Loyalty in Jeopardy
"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.
Tesla Stock Plummets
Tesla stock, which skyrocketed since Trump’s election in November on hopes it would be easier for the company to roll out robotaxis under the new administration, has nearly halved from its January peak.
Used Tesla Prices Expected to Decline
Prices of used Teslas have dropped in line with other EVs from Ford, Kia, and Hyundai, according to Edmunds. Used Tesla prices will likely decline further as Tesla trade-ins that are undergoing reconditioning reach the market, Edmunds analysts said.
Tesla’s Sales Take a Hit
Tesla’s sales likely fell 10% in February, hurt by declines in its Cybertruck pickup, Model 3 sedan, and Model Y SUV, separate estimates from market research firm Cox Automotive showed on Thursday.
Opportunity for Rivals
"These shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground," Caldwell said. "As Tesla brand loyalty and interest waver, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers."
Conclusion
The trend of Tesla trade-ins reaching a record high amid protests against Elon Musk’s government role is a concerning sign for the company. As brand loyalty wavers, it may be an opportunity for rivals to capitalize on the shift and gain ground in the electric vehicle market.
FAQs
Q: Why are there protests against Elon Musk?
A: Protests are against Elon Musk’s role in cuts to the federal workforce and cancellation of contracts that fund global humanitarian programs.
Q: What is the current state of Tesla’s stock?
A: Tesla stock has nearly halved from its January peak.
Q: What is the outlook for used Tesla prices?
A: Used Tesla prices are expected to decline further as Tesla trade-ins that are undergoing reconditioning reach the market.
Q: How has Tesla’s sales performance been?
A: Tesla’s sales likely fell 10% in February, hurt by declines in its Cybertruck pickup, Model 3 sedan, and Model Y SUV.