Tesla trade-ins on pace for record high amid Elon Musk backlash

SAN FRANCISCO – Motorists have traded in a record number of Tesla electric vehicles in March, Edmunds data showed, amid a wave of protests against chief executive Elon Musk’s work as an adviser to US President Donald Trump.

Tesla cars from model year 2017 or newer accounted for 1.4 per cent of all the vehicles traded in until March 15, up from 0.4 per cent in March 2024, according to data from Edmunds. Analysts at the national car shopping website said that share could grow through the second half of the month.

In February, the Trump administration’s first full month, Teslas made up 1.2 per cent of vehicles traded in.

March’s trade-ins so far would be the highest monthly share Edmunds has on record of Tesla trade-ins towards new or used purchases at dealerships, if the trend continues. This excludes trade-ins towards new purchases of Teslas and electric vehicles (EVs) from other direct-to-consumer brands.

Mr Musk is leading the Trump administration’s Department of Government Efficiency, and activists across the United States have staged so-called Tesla Takedown demonstrations over his role in cuts to the federal workforce and cancellation of contracts that fund global humanitarian programmes.

Social media has been rife with posts from Tesla owners in the US and some European countries showing them giving up their vehicles in displays of anger towards Mr Musk.

Prices of used Teslas have dropped in line with other EVs from Ford, Kia and Hyundai, according to Edmunds.

Used Tesla prices will likely decline further as Tesla trade-ins that are undergoing reconditioning reach the market, Edmunds analysts said.

Anger against the brand has resulted in Tesla vehicles being set on fire and damage to the company’s showrooms and charging stations.

Mr Trump has said he would label such attacks as domestic terrorism.

Tesla stock, which soared after Mr Trump’s election in November on hopes it would be easier for the company to roll out robotaxis under the new administration, has plunged more than 40 per cent from its January peak.

Mr Musk sought to reassure Tesla employees that despite “rocky moments”, they should “hang on to” their stock, in an unannounced all-hands meeting on March 20 in Austin, Texas, which the billionaire chief executive streamed live on his social media network X.

“If you read the news, it feels like Armageddon,” he told employees during the meeting. “I can’t walk past a TV without seeing a Tesla on fire. I understand if you don’t want to buy our product, but you don’t have to burn it down.”

Mr Fred McKinney, a corporate consultant, traded in his 2018 Tesla Model 3 in February to show his disapproval of Mr Musk.

“I thought about putting a bumper sticker on my car saying ‘I hate Musk’. But selling the car feels so much better,” he said on a LinkedIn post. “If you are considering a new EV, under no circumstances consider buying a Tesla.”

Data from Edmunds also showed shoppers’ consideration of new Teslas dropped to 1.8 per cent in February – the lowest level since October 2022 – after peaking at 3.3 per cent in November.

Tesla’s sales likely fell 10 per cent in February, hurt by declines in its Cybertruck pickup, Model 3 sedan, and Model Y sport utility vehicle, separate estimates from market research firm Cox Automotive showed on March 20.

“These shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV start-ups to gain ground,” said Ms Jessica Caldwell, Edmunds’ head of insights.

“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.” REUTERS, BLOOMBERG