Tesla trade-ins up 250% as Americans turn on Elon Musk. Here's what this means for Tesla and the EV market

Jessica Wong

Tue, Apr 15, 2025, 4:30 AM 5 min read

With Tesla trade-ins recently reaching an all-time high in California, more and more Americans appear to be ready to move on from supporting Elon Musk’s brand.

According to data from Edmunds, drivers in March swapped in a record number of Teslas — from the 2017 model year and on — for either new or used vehicles. In fact, Tesla trade-ins are reportedly up a staggering 250% in March, year over year.

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And as CBS News notes, many of these trade-ins were not done to facilitate purchasing a new Tesla.

“Brand loyalty is becoming a bigger question mark as factors such as Elon Musk's increasing public involvement in government, Tesla depreciation concerns and its increased saturation in major metro areas leave some longtime owners feeling disconnected from the brand,” Jessica Caldwell, head of insights at Edmunds, shared with CBS MoneyWatch.

As the Edmunds data shows a rise in Tesla drivers ditching the brand, online browsing activity suggests even non-Tesla drivers are also losing interest in Musk’s EVs. In February, interest in new Teslas reportedly dipped to 1.8%, the lowest it’s been since October 2022. For context, interest in the brand peaked at 3.3% in November 2024.

Dan Ives — a tech analyst at Wedbush Securities who’s long been a Tesla bull — is also sounding the alarm, warning that Musk’s political actions are casting a shadow over the company’s stock. Calling it a "dark brand crisis tornado," Ives believes only Musk can resolve the situation, suggesting that investors are hoping for more balance between Musk's role as CEO and his political endeavours with the Trump administration.

Some Tesla owners, such as one father of two who wished to remain anonymous, are parting with their Teslas even if it means taking a financial hit. When asked how underwater he is with his Tesla, this father said “around $10,000,” illustrating just how much some Americans are willing to lose in order to distance themselves from Musk’s brand.

“I just became honestly disgusted by what he stands for,” the father shared with CBS News. “I’m not really, like, a cancel culture kind of person … but honestly I feel kind of dirty driving it around. I definitely feel people are more aggressive towards me on the road now.”