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Tesla brand loyalty plummeted after Musk endorsed Trump, study finds

Tesla brand loyalty plummeted after Musk endorsed Trump, study finds
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Tesla has had the most repeat customers of any major U.S. automaker for years, but brand loyalty has plummeted since CEO Elon Musk publicly endorsed President Donald Trump in the summer of 2024, according to data from research firm S&P Global Mobility, provided exclusively to Reuters.

According to S&P, Tesla’s loyalty peaked in June 2024, when 73% of families who owned a Tesla and bought a new car would buy it again. The figure began to drop sharply in July after Musk endorsed Trump. In March 2025, loyalty reached a low of 49.9%, slightly below the market average. In May, it rose to 57.4%, which is again above average, on par with Toyota, but lower than Chevrolet and Ford.

Analysts believe that Musk's involvement in politics has alienated some environmentally conscious buyers, and the outdated model line faces competition from GM, Hyundai and BMW. The only new product from 2020 — the Cybertruck — turned out to be a failure. In the first five months of 2025, Tesla sales fell by 8% in the US and by 33% in Europe, where Musk's political activism was particularly harsh. This naturally affected the company's profits.

Until July 2024, Tesla was attracting an average of five new families for every one lost. Now, it’s down to less than two, the lowest rate in the brand’s history. Even with Musk and Trump’s feud, Tesla customers are increasingly being lured away by Rivian, Polestar, Porsche, and Cadillac.

Investors like Zacks Investment Management are counting on future profits from robo-taxis and licensing of autopilot technology. Tesla began limited testing of robo-taxis in Austin in June, but it is not yet open to the general public.

Recall that a jury recently found Tesla partially at fault for a fatal 2019 crash involving Autopilot. The company was ordered to pay the family of the deceased and the injured a portion of the $ 329 million in compensation. This process may set a precedent for future lawsuits against Tesla related to Autopilot and Full Self-Driving.

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