Tesla owners are trading in cars at record rates amid Musk backlash

The number of Tesla owners trading in their cars surged to a record high in March, compounding the troubles of an automaker that has been embroiled in controversy since CEO Elon Musk became a central figure of President Donald Trump’s administration.

Of all vehicles traded in at dealerships for new or used cars through March 16, 1.4 % were Tesla cars from model year 2017 or newer – the highest share on record, according to data from U.S. car shopping website Edmunds, which analyzed purchases at traditional dealerships (but not direct-to-consumer brands). The data shows a steady increase: Last March, 0.4 % of all vehicles traded in were Teslas. The figure rose to 0.8 % in January and 1.2% in February.

The rise in trade-ins comes as Musk faces backlash for his role in dramatic cuts to the federal government through the U.S. DOGE Service.

Protesters have vandalized cars and storefronts at Tesla facilities across the country and set Tesla charging stations ablaze, among other violent and destructive acts.

Trump on Friday threatened vandals of Tesla cars with 20-year sentences in El Salvador’s infamous mega-prison, after Attorney General Pam Bondi earlier this week said attacking Teslas was “domestic terrorism.”

Musk’s company has faced declining stock price and consumer boycotts since the start of the year.

Tesla’s stock, which peaked at around $480 per share in December, closed Thursday at $236.26 per share. In January, Tesla sales in Europe sank 45% compared to the previous year.

Some Tesla owners have also begun to express buyer’s remorse, fearing their car signals to others that they support Musk, one of the most powerful right-wing political figures in the United States.

Jessica Caldwell, head of insights for Edmunds, said Musk’s reputation may be one of the reasons for the increase in trade-ins.

“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,” she said.

As more carmakers enter the electric vehicle market, consumers have begun to explore their options.

Searches for used Teslas in February fell 16 % from the previous month and 7% from the previous year, signaling that consumers are considering other electric vehicles, according to a February report from Cars.com. There are 76 models of used electric vehicles on the market this year, up from 58 a year ago, the report said.

Meanwhile, searches for non-Tesla electric vehicles on Cars.com rose 28 % over the past year, according to the car site.

“What we’re seeing in the marketplace is just fragmentation that is very normal,” said David Greene, an analyst with Cars.com. “Tesla enjoyed exclusivity and market dominance for quite a long time, but other automakers are getting into the EV space.”

Green is skeptical that the available market data reflect a significant consumer backlash against Tesla. Those shifts in behavior can be slow to emerge in buyer interest, trade-in or sales data, he cautioned: “The market can shift on a dime, but the data is always lagging.”

The share of people considering buying a new Tesla has also dropped, according to Edmunds. In February, 1.8 % of car shoppers on the Edmunds site were considering purchasing a new Tesla, the lowest proportion since October 2022. The figure peaked at 3.3 % in late November .

When consumers trade in a Tesla, a majority are purchasing electric or hybrid models as their next car, according to Edmunds.

“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,” Caldwell said.