With Tesla trade-ins recently reaching an all-time high in California, more and more Americans appear to be ready to move on from supporting Elon Musk’s brand.
According to data from Edmunds, drivers in March swapped in a record number of Teslas — from the 2017 model year and on — for either new or used vehicles. In fact, Tesla trade-ins are reportedly up a staggering 250% in March, year over year.
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And as CBS News notes, many of these trade-ins were not done to facilitate purchasing a new Tesla.
“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,” Jessica Caldwell, head of insights at Edmunds, shared with CBS MoneyWatch.
Dip in Tesla interest
As the Edmunds data shows a rise in Tesla drivers ditching the brand, online browsing activity suggests even non-Tesla drivers are also losing interest in Musk’s EVs. In February, interest in new Teslas reportedly dipped to 1.8%, the lowest it’s been since October 2022. For context, interest in the brand peaked at 3.3% in November 2024.
Dan Ives — a tech analyst at Wedbush Securities who’s long been a Tesla bull — is also sounding the alarm, warning that Musk’s political actions are casting a shadow over the company’s stock. Calling it a "dark brand crisis tornado," Ives believes only Musk can resolve the situation, suggesting that investors are hoping for more balance between Musk’s role as CEO and his political endeavours with the Trump administration.
Some Tesla owners, such as one father of two who wished to remain anonymous, are parting with their Teslas even if it means taking a financial hit. When asked how underwater he is with his Tesla, this father said “around $10,000,” illustrating just how much some Americans are willing to lose in order to distance themselves from Musk’s brand.
“I just became honestly disgusted by what he stands for,” the father shared with CBS News. “I’m not really, like, a cancel culture kind of person … but honestly I feel kind of dirty driving it around. I definitely feel people are more aggressive towards me on the road now.”
Caldwell believes Musk’s involvement with Trump’s administration is certainly contributing to the shift in attitude, but also points to another factor: Teslas are everywhere in California. With so many on the road, some owners are simply looking for something different.
As Caldewll notes with CBS News, this change in attitude toward Tesla could open the door for competitors to grab market share.
"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,” said Caldwell.
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What this means for the EV market
While Tesla sales have declined a whopping 13% in the early goings of 2025, the EV market in America continues to grow. According to Cox Automotive, U.S. EV sales have risen more than 11% in 2025, with EVs representing roughly 8% of new cars sales in the first quarter.
In the last few years, Tesla’s dominance in the American EV market had begun to wane as competitors caught up with their own offerings. In Q2 2024, Tesla’s market share dipped below 50% for the first time, signaling that competition in the EV sector was beginning to heat up.
And as Edmunds explains, EV car buyers are not only starting to favor the competition’s models, they’re also trading in their Teslas to get them. “More and more people are opting to trade their Teslas for an EV from a legacy automaker,” reads Edmund’s study. “That makes a lot of sense: Five years ago, legacy automakers just didn’t have vehicles that could compete with Teslas.”
With increased competition in today’s EV market, it was only a matter of time before Tesla’s market dominance began to fade. But up until Musk started working with Trump’s Department of Government Efficiency (DOGE), losing market share was just a matter of more competition entering the market. Tesla’s decline in 2025, however, is much more nuanced than that.
With 44% of the EV market, according to Cox Automotive, Tesla is still the largest seller of EVs in America. But with stronger EV offerings from the competition, coupled with Musk’s controversial role within the U.S. government, Tesla’s hold as American’s leader in EVs may be on thin ice.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
