A record number of Tesla vehicles have been traded in this month, following protests against CEO Elon Musk’s role with the Trump administration and the Department of Government Efficiency.
What’s Happening
Data from Edmunds shows that Tesla cars from model year 2017 or newer accounted for 1.4% of all vehicles traded in until March 15, a significant increase from 0.4% in March last year. Analysts at Edmunds predict that this share could grow through the second half of the month.
Protests and Vandalism
Activists across the US have staged Tesla Takedown demonstrations over Musk’s role in cuts to the federal workforce and cancellation of contracts that fund global humanitarian programs. This has led to a surge in Tesla trade-ins, with social media posts showing Tesla owners giving up their vehicles in displays of anger toward Musk. Anger against the brand has escalated to the point of Tesla vehicles being set on fire and damage to the company’s showrooms and charging stations.
Impact on the Brand
According to Jessica Caldwell, Edmunds’ head of insights, “Brand loyalty is becoming a bigger question mark as factors such as Elon Musk’s increasing public involvement in government…leave some longtime owners feeling disconnected from the brand.” Tesla’s stock has nearly halved from its January peak.
Why It Matters
This surge in trade-ins comes amid a series of setbacks for Tesla, including:
- A significant drop in Tesla sales in Europe, with some countries experiencing a decline of over 40%
- The company’s Cybertruck struggling, with figures significantly below company projections
- A recall affecting 46,096 Cybertruck vehicles due to safety concerns
- Insurance premiums for Tesla vehicles at risk of an increase due to a surge in vandalism against the company’s vehicles, fueled by resentment towards Musk over his role with the Trump administration
Conclusion
The backlash against Elon Musk and Tesla is having a significant impact on the company, with a record number of trade-ins and a decline in sales. As the situation continues to unfold, it will be interesting to see how Tesla responds to these challenges and works to regain the trust of its customers.