- A new report found Tesla trade-ins hit record level in March.
- Sales for the U.S. EV maker have dropped so far this year.
- Tesla stock saw a huge bump last year but is down about 40% in 2025.
Dozens of criminal incidents involving the torching and vandalizing of Tesla vehicles in protest of Elon Musk’s role in President Donald Trump’s administration are driving headlines around the country but a quieter — and legal — uprising is afoot that’s likely to have a more significant impact on the U.S. electric vehicle maker.
According to a Thursday report from automotive analysis site Edmunds, March represented “the highest ever share” it had seen for Tesla trade-ins toward new or used cars from dealerships selling other brands, per CNBC.
Tesla vehicles from model year 2017 or newer accounted for 1.4% of all the vehicles traded in until March 15, up from 0.4% in March last year, according to data provided to Reuters by Edmunds. Edmunds analysts said that share could grow through the second half of the month.
The shift in consumer sentiment about Tesla, a company that’s dominated the electric vehicle market for years, is creating new sales opportunities for the growing number of competitors in domestic and international EV markets.
“Shifts in Tesla consumer sentiment could create an opportunity for legacy automakers and EV startups to gain ground,” Jessica Caldwell, head of insights at Edmunds, wrote in an email to CNBC. “As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”
Tesla’s stock value had an incredible ride in 2024, gaining over 80% over the course of the year, with most of that price ascension realized after Trump won reelection on Nov. 6.
Industry watchers say that postelection bump was driven in large part by investor confidence that Musk’s massive financial support of Trump, with campaign contributions reportedly north of $270 million, and subsequent appointment to lead the newly created Department of Government Efficiency, would bode well for Tesla’s future performance as the CEO joined the president’s inner circle.
Tesla’s financial tale, however, has been on the opposite path since Trump took the oath of office.
So far this year, Tesla stock has lost around 40% of its value and the latest news about record trade-in volumes follows a dismal trend for sales of new Tesla vehicles.
Tesla having a rough year
Tesla vehicle sales got off to a rocky start in 2025, particularly across Europe, where year-over-year sales in January decreased in the U.K., France, the Netherlands, Norway, Spain, Sweden, Denmark and Portugal, according to a Feb. 7 report by NASDAQ analysts. The least significant decrease of all of these countries was the U.K., where sales dropped by 18.2%. The average decrease in sales between all of the countries listed was 47.5% and Tesla saw its most significant January sales decrease in Spain, where it plummeted by 75.4%.
EV news site Electrek notes most industry watchers agree that the two driving forces behind declining Tesla sales are Musk’s political involvement and the company’s efforts to transition Model Y production to a new design, a move that is affecting production and sales.
Some analysts point to Musk’s close personal association with the Tesla brand as a plus for those who view his actions outside the company as positive, but it’s also one that can have adverse consequences if those activities are seen by potential customers in a negative light.
“Tesla has played a pivotal role in accelerating the adoption of electric vehicles, but our findings show that Elon Musk’s personal involvement in Tesla’s brand appears to be polarizing, pushing many buyers to look elsewhere,” said Ginny Buckley, chief executive of Electrifying.com, per a Newsweek report.
While Tesla models held the top two spots for most popular EVs sold in the U.S. in February, overall sales for the company are down while competitors including BMW and Rivian saw strong, double-digit growth last month.
According to new Cox Automotive data cited in a report from InsideEVS, Tesla sales were down 10% on a monthly basis in February, with the Model Y dropping 3.1%, Model 3 falling 17.5% and the Cybertruck plunging 32.5%.