Tesla owners are trading in their EVs at record levels, Edmunds says

As Elon Musk completes his second month in office, Tesla owners are trading in their electric vehicles at unprecedented rates, as reported by national car shopping site Edmunds.

The data released by Edmunds on Thursday reveals that March saw the highest percentage ever of Tesla trade-ins towards new or used cars from dealerships selling other brands.

Since assuming his role in the White House earlier this year, Musk has implemented significant cuts in the federal workforce and government spending. He has also faced legal challenges in his efforts to access sensitive government systems and data.

Prior to leading the Department of Government Efficiency (DOGE), Musk invested around $290 million to support President Donald Trump’s reelection campaign.

Following Trump’s victory, Tesla’s stock price initially rose, but it has since plummeted by 42% this year. The company has faced protests and criminal acts targeting its facilities and vehicles across the country.

In addition, Tesla is facing increased competition in the electric vehicle market. While Tesla sales declined, other automakers like Ford, Chevrolet, and Volkswagen have seen growth in their EV sales.

According to Jessica Caldwell, head of insights at Edmunds, shifting consumer sentiment towards Tesla could benefit other automakers and EV startups.

Despite its challenges, Tesla’s brand remains closely tied to Musk. Recent data shows a decline in interest for new Tesla models on car shopping platforms.

Before Musk’s involvement with DOGE, Tesla’s brand value had already been declining. The company’s brand value dropped by 26% in 2024, according to Brand Finance.

While many Tesla owners trade in their vehicles for newer models of the same brand, Edmunds’ data does not account for these transactions.

Tesla has not yet responded to requests for comment.

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