Tesla CEO Elon Musk’s pivot to politics has been divisive, not least for owners of his company’s electric vehicles (EV), who are leaving the brand at record-high levels.
As reported by Reuters, data from US automotive analysts Edmunds have shown that 1.4 per cent of all cars traded in from March 1 to March 15 were Teslas, a record for the brand.
It represents a significant increase on the 0.4 per cent figure in March 2024 and a steady increase on the 1.2 per cent trade-in rate in February.
“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,” Edmunds’ head of insights, Jessica Caldwell, told Reuters.
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The Tesla EVs traded in were 2017 and later model year vehicles, though there isn’t a breakdown on which model years were most commonly being exchanged.
In the lead-up to last year’s US election, Mr Musk aligned himself with now-US President Donald Trump, subsequently becoming a senior White House advisor and leading cost-cutting efforts under the so-called Department of Government Efficiency (DOGE).
In addition to this, Mr Musk has offered commentary on the politics of nations outside the US, alienating some parts of the population with his views.
This has led to protests against Tesla, with some US dealerships being attacked, while privately owned vehicles have also been targeted and damaged.
While the record number of Tesla trade-ins may be partly attributed to owners who disagree with Mr Musk’s political views, the threats of their EVs being attacked by Musk opponents is likely another key factor.
Following the US election, Tesla stock prices reached record highs of almost US$480 per share, however this then dropped to about US$220 before now starting to rise once again.
The rise in share price didn’t translate to profitability or deliveries, both of which decreased last year.
Tesla said its year-on-year revenue had increased by just one per cent last year, rising from US$96.8 billion (A$155.3bn) to US$97.7 billion (A$156.7bn).
This was despite its global vehicle deliveries declining to 1,789,226 in 2024, representing a 1.1 per cent drop compared to its record figure of 1,808,581 in 2023.
The decline in deliveries was reflected by a one per cent drop in gross profit, which stood at US$17.5 billion (A$28.1bn) for the year.
The most telling aspect of Tesla’s 2024 financial performance was a six per cent decline in automotive revenues, which fell from US$82.4 billion (A$132.2bn) in 2023 to US$77 billion (A$123.5bn) last year.
In Australia, Tesla delivered 38,347 vehicles in 2024, a 16.9 per cent drop on its 2023 figure, where the brand experienced huge growth in the local market.
Across the two opening months of 2025, its year-on-year deliveries have continued to fall, dropping by 65.6 per cent to 2331 vehicles delivered – down from 6772 in the same period last year.
