Customer loyalty to the Tesla brand is a big issue for Elon Musk.
Tesla returns hit a record high in March as CEO Elon Musk faces a public backlash for his role as an adviser to President Donald Trump.
Teslas from the 2017 model year and later accounted for 1.4 percent of all vehicles traded through March 15, up from 0.4 percent in March last year, according to data from Edmunds. The share could continue to rise in the second half of the month, Edmunds analysts forecast.
Teslas accounted for 1.2 percent of all vehicles traded in in February.
The percentage of Teslas traded in for new vehicles in March is expected to be the highest monthly total, according to Edmunds data. The figure does not include vehicles traded in for new Teslas.
According to a March survey by Cars.com, searches for used Teslas fell 16% over the past month, while searches for used non-Tesla electric vehicles rose 28%.
Tesla CEO Elon Musk is facing backlash for his role in streamlining the government workforce and cutting federal spending. He has also faced backlash in Europe for his perceived support of far-right parties.
Social media has been flooded with posts showing Tesla owners in the US and some European countries ditching their Teslas in protest of Musk. Some have even set fire to Teslas and vandalized the company’s showrooms and charging stations.
“Tesla brand loyalty is becoming a big question mark,” said Jessica Caldwell, Edmunds director of analysis. “Elon Musk’s political involvement, concerns about Tesla depreciation, and growing saturation in major metropolitan areas have some longtime owners feeling less committed to Tesla.”
Edmunds analysts said used Tesla prices are likely to continue to fall as new Tesla models hit the market.
“Changes in consumer sentiment toward Tesla could create opportunities for traditional automakers and EV startups to gain market share,” said Caldwell.
“As Tesla loyalty and interest wane, companies that offer competitive pricing, new technology, or simply less controversy could attract Tesla owners who have turned away from the brand and first-time EV buyers.”
Tesla shares have erased all of their gains since the U.S. presidential election. Last year, the company’s global car sales fell for the first time. Tesla also faces stiff competition in China and falling sales in Europe.
Fred McKinney, a business consultant, traded in his 2018 Tesla Model 3 last month to protest Musk.
“I thought about putting a ‘I hate Musk’ sticker on it. But it’s better to sell it,” McKinney said in a LinkedIn post. “If you’re considering a new electric car, don’t buy a Tesla.”
News
Alfa Romeo supercar, once a symbol of love, auctioned for record amount
A 1932 Alfa Romeo 8C supercar, bought by a British gentleman to take his wife on their honeymoon, is going…
98-year-old veteran drives tank to crush Tesla to protest Elon Musk
A 98-year-old World War II veteran has captured the world’s attention by driving a tank to crush a Tesla, in…
Bill Belichick’s family members are furious after a secret investigation into his girlfriend, Jordon Hudson
Bill Belichick’s family ‘digging into’ Jordon Hudson’s background as they grow ‘extraordinarily concerned’ for coach Bill Belichick’s family members have their…
Tiger Woods put on notice as son Charlie suffers major US Open issue
Tiger Woods will have to wait a while longer before watching his son play in the US Open. Charlie Woods…
SHOCK: Taylor Swift subpoenaed in Blake Lively-Justin Baldoni lawsuit
A spokesperson for Taylor Swift described the subpoena as “creating tabloid clickbait” Taylor Swift, Blake Lively, Justin Baldoni.Credit : Dimitrios…
Miley Cyrus recalls the moment in her life when she saw her house engulfed in flames.
Miley Cyrus Reflects on the 2018 Fire That Destroyed Her $2.52M Malibu Home: ‘The Biggest Blessing’ Dimitrios Kambouris/Getty Images; Getty…
End of content
No more pages to load