Tesla Trade-Ins Rocket to Record High as Elon Musk Backlash Deepens

Drivers are turning their backs on Tesla as trade-ins of the carmaker’s electric vehicles head for record highs, according to new data.

Elon Musk’s company is under increasing scrutiny due to his role at the head of the Department of Government Efficiency (DOGE) and its quest to shutter government agencies and slash the federal workforce. Protesters have been attacking Tesla dealerships and cars, with Musk and President Donald Trump labeling their actions “domestic terrorism.”

The response from drivers has been to trade in Teslas in record numbers, Edmunds data—shared with Reuters—showed. Some 1.4 percent of all the vehicles purchased at dealerships and exchanged until mid-March were Teslas, Edmunds said. The figure has risen from 0.4 percent in March 2024.

All of those vehicles were 2017 models or newer. The picture could become even more bleak for Musk, the national car shopping website added—saying the figure could grow by month’s end.

The forecast from Edmunds shows the highest level of trade-ins it has ever seen for Teslas on record. For all of February, the figure was 1.2 percent of vehicles traded in.

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March’s data doesn’t include numbers from other direct-to-consumer sellers, meaning the picture is likely even more concerning for Musk.

“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,” said Jessica Caldwell, Edmunds’ head of insights.

That inadvertently offers inroads for other brands. “As Tesla brand loyalty and interest waver, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers,” Caldwell added.

The trade-in news comes after Musk tried to reassure Tesla staff, and stockholders, in an all-hands call in Austin, Texas, late Thursday.

“Frankly, the car business is a tough business, so... there are times when there are rocky moments, like things are, like a little bit of stormy weather,” Musk said. “But what I’m here to tell you is the future is incredibly bright and exciting.”

The “stormy weather” may have been a reference to the 40 percent stock plunge the company has seen since Musk began working closely with Trump.

The meeting came just hours after Tesla said it was recalling its Cybertruck pickup due to a defect in a part that could cause a panel to detach.