A recent report reveals that Tesla customers are trading in their vehicles for alternatives such as BMWs, Hyundais, and Ford electric vehicles.
There seems to be no end to the Tesla turmoil as protests continue to spread like wildfire globally accompanied by incidents of vandalism. If Elon Musk-led EV company didn’t already have a lot to deal with, recent data has revealed a new record high of trade-ins among Tesla owners. A Reuters report, citing Edmunds data, reveals that trade-ins for Tesla models from 2017 or newer have surged to 1.4% by mid-March 2024, doubling from the 0.7% recorded earlier in the year.
What is the reason behind Tesla exodus?
Tesla has been witnessing a decline in sales, a trend that began even before Elon Musk was appointed as the Head of the U.S. Department of Government Efficiency (DOGE). According to Brand Finance, a marketing consultancy, Tesla’s brand value dropped by 26% in 2024. The backlash intensified after Musk announced plans to significantly reduce federal jobs and cut government spending, sparking widespread criticism and contributing to the company’s challenges. Also, many have questioned why Musk has access to sensitive government computer systems and data. To make matters worse for Tesla, S&P Global Mobility stated that in January 2025, Tesla’s sales dwindled by 11% year-on-year in the U.S. market, while legacy companies like Ford, Chevrolet and Volkswagen saw an increase in the EV segment.
Brand perception plays a big part in the Tesla trade-in exodus. Attacks on Tesla dealerships and on privately owned cars have caused fear in owners as they don’t want to face the brunt of this hatred towards Musk. With vandalism, burning of Tesla cars at a dealership’s parking lot and damaging of charging stations on high, U.S. Attorney General Pamela Bondi recently released a statement — “The swarm of violent attacks on Tesla property is nothing short of domestic terrorism. The Department of Justice has already charged several perpetrators with that in mind, including in cases that involve charges with five-year mandatory minimum sentences.”
Tesla’s loss, competitors gain
Jessica Caldwell, Edmunds’ Head of Insight, stated that this Tesla wave will be an opportunity for legacy automobile players. The black lash and increased competition have affected Tesla’s sales catastrophically. In Europe, Tesla sales tanked by 45% in January and February 2025 as compared to last year. What is surprising to note is the EV sector in Europe has increased by 31% with Volkswagen being the biggest gainer.
According to Edmunds data, 4.2% of Tesla trade-ins for new cars opted for the BMW i4, another 4% for the Hyundai Ioniq 5 and 4% for the Ford Mustang Mach-E.
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This article was first uploaded on March twenty-four, twenty twenty-five, at zero minutes past twelve in the night.
