This massive sell-off of Tesla EVs stems mainly from its CEO’s current public political stance.
Tesla owners in North America are apparently turning in their EVs at unprecedented rates this month, according to new data from Edmunds. This surge in trade-ins incidentally coincides with the frequent protests taking place at its dealerships recently and the drastic drop in its new sales across several key regions, which in turn primarily stems from the populous expressing their displeasure at CEO Elon Musk’s newly-minted advisory position in the current Trump administration.
The automotive research firm has recently found that Teslas from 2017 or newer accounted for 1.4% of all trade-ins through mid-March, more than tripling the 0.4% rate from March 2023. This comes after February’s data that already showed elevated numbers at 1.2%, marking the Trump administration’s first full month.
Now if this trend continues, March will set a record for the highest monthly share of Tesla trade-ins at dealerships in Edmunds’ history. It is further worth highlighting too that these figures currently exclude direct exchanges for new Teslas or other direct-to-consumer EVs, so the numbers may even be higher than what is reported.
For those out of the loop as to why many have turned their noses away from Tesla, this mainly specifically stems from Elon Musk heading the new Department of Government Efficiency (DOGE) under President Trump. This role has been controversial to say the least, with the department in question being largely behind the massive layoffs in the federal government and the cancellations of global humanitarian program funding.
Social media platforms have seen numerous posts from disgruntled Tesla owners in both the U.S. and Europe documenting their decisions to abandon the vehicles. Some protests have escalated beyond trade-ins, with reports of Tesla vehicles being set on fire and damage to showrooms and charging stations – incidents President Trump has since stated that he would classify as domestic terrorism.
Consumer interest in new Tesla vehicles has also fallen to its lowest point since October 2022, with consideration dropping to just 1.8% last month after reaching 3.3% in November. Cox Automotive estimates Tesla sales declined approximately 10% in February, with decreases across its Cybertruck, Model 3, and Model Y lines.
“These shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups,” Caldwell noted. “As Tesla brand loyalty and interest waver, competitors offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”
The market impact from Mr. Musk’s new role in the Trump administration has actually extended beyond vehicle returns and a sales slump. Tesla stock, which initially surged following Trump’s November election victory on expectations of easier regulatory pathways for autonomous vehicle development, has lost nearly half its value since peaking in January.
