Tesla trade-ins reach record high amid backlash over Musk’s government role

A record number of Tesla vehicles were traded in during the first half of March, according to data provided by Edmunds and first reported by Reuters. The increase comes amid growing protests against Tesla CEO Elon Musk’s advisory role within the administration of U.S. President Donald Trump.

Tesla models from the 2017 model year or newer made up 1.4% of all trade-ins at dealerships through March 15, compared to 0.4% during the same period in March 2024. This figure does not include trade-ins applied to new Teslas or vehicles from other direct-to-consumer automakers. Edmunds analysts noted that the share could rise further during the remainder of the month.

In February—Trump’s first full month in office—Teslas accounted for 1.2% of all vehicle trade-ins. If the current trend holds, March would mark the highest monthly share of Tesla trade-ins on record toward new or used purchases at dealerships.

The uptick coincides with public demonstrations known as “Tesla Takedown” events, where participants protest Musk’s leadership of the Department of Government Efficiency. Musk’s role has been linked to federal workforce reductions and the termination of funding for certain global humanitarian programs.

Social media posts have shown Tesla owners in the U.S. and parts of Europe giving up their vehicles in protest. In some instances, Tesla vehicles have been set on fire or Tesla facilities vandalized. President Trump has stated that such acts would be treated as domestic terrorism.

Jessica Caldwell, head of insights at Edmunds, said the trend raises questions about brand loyalty. She cited factors including Musk’s political visibility, concerns over Tesla’s vehicle depreciation, and market saturation in major metropolitan areas.

Tesla previously stated it expects its vehicle business to return to growth in 2025 after experiencing a slight decline in 2024. Used Tesla prices have declined in line with broader trends affecting other EV brands, including Ford, Kia, and Hyundai. Edmunds analysts anticipate further declines as more Tesla trade-ins are reconditioned and listed for resale.

Consideration of new Tesla models among shoppers also declined, falling to 1.8% in February—the lowest level since October 2022—after peaking at 3.3% in November.

Separate estimates from Cox Automotive indicated that Tesla’s overall sales likely declined by 10% in February. The drop was attributed to weaker performance from the Model 3 sedan, Model Y SUV, and Cybertruck pickup.

Caldwell added that waning consumer interest in Tesla could benefit other automakers.

“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,” she said.