On a sunny March day in 2025, a Tesla store stands in Alhambra, California, captured in a photograph by Frederic J. Brown for AFP via Getty Images. As we reflect on the whirlwind early days of Elon Musk’s political journey into the White House, there’s an intriguing trend taking shape in the automotive world. Tesla owners are trading in their gleaming electric vehicles at unprecedented rates, according to fresh insights from Edmunds, the well-known national car shopping site.
Edmunds released data this past Thursday, revealing that March marked a record high for Tesla trade-ins, with many owners choosing new or used vehicles from other brands available at car dealerships. Since Musk took up residence in Washington, D.C., joining the second Trump administration in January, he’s been busy reshaping the federal workforce and trimming government expenses. This ambitious agenda has allowed him privileged access to sensitive U.S. government computer systems and data, though he’s faced legal challenges at every turn.
Before taking the reins at the Department of Government Efficiency, often called DOGE, Musk funneled an impressive $290 million into efforts aimed at securing President Donald Trump’s return to the Oval Office. The stock market initially responded favorably, with investors snapping up Tesla shares in the aftermath of Trump’s November victory. However, recent developments have prompted a rush for the exits, sending Tesla’s stock down by a striking 42% this year. The decision has not lacked controversy; waves of protests have targeted Tesla facilities at home and abroad, with acts of vandalism and arson breaking out against stores, vehicles, and charging stations across the U.S.
Adding to Tesla’s challenges is the intensifying competition in the electric vehicle (EV) landscape. In January, S&P Global Mobility noted an 11% drop in Tesla’s year-over-year sales in the U.S., while industry stalwarts like Ford, Chevrolet, and Volkswagen increased their market shares by ramping up their EV offerings.
Jessica Caldwell, head of insights at Edmunds, points out, “Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground. As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”
The bond between the Tesla brand and its charismatic CEO is stronger than with any other automaker. Back in August 2024, Edmunds surveys uncovered that a mere 2% of car shoppers in the United States weren’t familiar with Musk’s name.
However, interest in Tesla’s new vehicle models on the Edmunds platform has plummeted to the lowest levels since October 2022, following a peak late in November. Even before Musk’s stint at DOGE, Tesla’s brand was already feeling the pinch. According to Brand Finance, a leading research and consulting firm, the brand’s value tumbled by 26%, equating to a $15 billion loss in 2024, marking two consecutive years of decline.
Interestingly, many Tesla owners opt to trade in their electric vehicles for a newer Tesla model—a trend that Edmunds did not factor into their recent analysis. For its part, Tesla has yet to respond to requests for comments on the situation.
In the world of finance and automotive industry reviews, there’s more to unpack than just short-term political influences. As highlighted in a video segment, challenges with Tesla’s core business could pose more significant hurdles than the current political winds.
