市場分析

Musk’s Controversy Drives Record Tesla Trade-Ins This Month

Amos Simanungkalit · 21 Mar22.5K 閱讀

Image Credit: Bloomberg

A record number of Tesla (TSLA) electric vehicles have been traded in this month, according to data from Edmunds, as protests against CEO Elon Musk's role as an adviser to President Donald Trump gain momentum. Tesla vehicles from model year 2017 or newer made up 1.4% of all vehicles traded in through March 15, up from 0.4% in the same period last year. Analysts at Edmunds expect this share to grow further through the rest of the month. In February, Tesla accounted for 1.2% of vehicles traded in, marking the first full month of the Trump administration.

If this trend continues, March could see the highest monthly share of Tesla trade-ins on record, not including trade-ins for new Teslas or other direct-to-consumer EVs. Musk's involvement in government and his leadership of the Department of Government Efficiency has sparked a backlash, leading to protests, such as the "Tesla Takedown" demonstrations, over his role in federal workforce cuts and the cancellation of global humanitarian contracts.

Social media has been flooded with posts from Tesla owners in the U.S. and Europe who are returning their vehicles in protest of Musk’s actions. Edmunds' Jessica Caldwell highlighted that brand loyalty is being questioned, as factors like Musk's political involvement, concerns about Tesla's depreciation, and the brand's increasing presence in major metro areas are leaving some long-term owners feeling disconnected.

Tesla has expressed confidence that its vehicle business will return to growth in 2025, following a slight drop in 2024. However, prices of used Teslas, along with those from Ford, Kia, and Hyundai, have fallen, and they are expected to decline further as more trade-ins hit the market.

Protests against Tesla have escalated, with some vehicles being set on fire and damage occurring to company showrooms and charging stations. Meanwhile, Tesla’s stock, which soared after Trump's election on hopes of easier rollout of robotaxis, has nearly halved from its January peak.

Corporate consultant Fred McKinney, who traded in his 2018 Tesla Model 3 in protest, said he felt more satisfaction from selling the car than putting a bumper sticker on it. Edmunds data also revealed a drop in shoppers considering new Teslas, down to 1.8% in February from a high of 3.3% in November 2022. Tesla’s sales likely fell 10% in February, with declines in its Cybertruck, Model 3, and Model Y.

As consumer sentiment toward Tesla weakens, Caldwell pointed out that this could provide an opportunity for legacy automakers and EV startups to gain ground by offering competitive pricing, innovative technology, or simply avoiding controversy.