Tesla returns hit a record high in March as CEO Elon Musk faces a public backlash for his role as an adviser to President Donald Trump.
Teslas from the 2017 model year and later accounted for 1.4 percent of all vehicles traded through March 15, up from 0.4 percent in March last year, according to data from Edmunds. The share could continue to rise in the second half of the month, Edmunds analysts forecast.
Teslas accounted for 1.2 percent of all vehicles traded in in February.
The percentage of Teslas traded in for new vehicles in March is expected to be the highest monthly total, according to Edmunds data. The figure does not include vehicles traded in for new Teslas.
According to a March survey by Cars.com, searches for used Teslas fell 16% over the past month, while searches for used non-Tesla electric vehicles rose 28%.
Tesla CEO Elon Musk is facing backlash for his role in streamlining the government workforce and cutting federal spending. He has also faced backlash in Europe for his perceived support of far-right parties.
Social media has been flooded with posts showing Tesla owners in the US and some European countries ditching their Teslas in protest of Musk. Some have even set fire to Teslas and vandalized the company’s showrooms and charging stations.
“Tesla brand loyalty is becoming a big question mark,” said Jessica Caldwell, Edmunds director of analysis. “Elon Musk’s political involvement, concerns about Tesla depreciation, and growing saturation in major metropolitan areas have some longtime owners feeling less committed to Tesla.”
Edmunds analysts said used Tesla prices are likely to continue to fall as new Tesla models hit the market.
“Changes in consumer sentiment toward Tesla could create opportunities for traditional automakers and EV startups to gain market share,” said Caldwell.
“As Tesla loyalty and interest wane, companies that offer competitive pricing, new technology, or simply less controversy could attract Tesla owners who have turned away from the brand and first-time EV buyers.”
Tesla shares have erased all of their gains since the U.S. presidential election. Last year, the company’s global car sales fell for the first time. Tesla also faces stiff competition in China and falling sales in Europe.
Fred McKinney, a business consultant, traded in his 2018 Tesla Model 3 last month to protest Musk.
“I thought about putting a ‘I hate Musk’ sticker on it. But it’s better to sell it,” McKinney said in a LinkedIn post. “If you’re considering a new electric car, don’t buy a Tesla.”
