Tesla owners are actively trading in their electric cars for new ones, reaching a record high, CNBC reports, citing a report by car buying site Edmunds.
Data published by Edmunds showed that March 2025 was the month when the percentage of Tesla trade-ins for new or used cars from other brands reached an all-time high.
Tesla also faces increased competition from other electric car makers. In January, S&P Global Mobility found that Tesla's U.S. sales were down 11% from a year earlier, while Ford, Chevrolet and Volkswagen increased their electric vehicle sales, gaining market share.
The Tesla brand, more than any other automaker, is closely associated with its CEO. According to an Edmunds survey in August 2024, only 2% of U.S. car buyers had not heard of Musk.
The Edmunds study also noted that interest in purchasing new Tesla models has dropped on their platform to its lowest level since October 2022 after peaking in November.
By the way, even before Musk took over DOGE, the Tesla brand was already struggling. Its value fell by 26%, or about $15 billion, in 2024, its second consecutive annual decline.