As the number of Tesla vehicles listed for resale in the U.S. continues to rise, consumer interest in the brand appears to wane.
Reuters reported on data from the American automotive marketplace platform Edmunds, revealing that between March 1 and 15, Tesla models released since 2017 accounted for 1.4% of all used car listings. This is the highest monthly percentage recorded on the platform to date.
At the same time, consumer confidence in Tesla is declining. Edmunds found that only 1.8% of respondents expressed interest in purchasing a Tesla last month, the lowest figure since October 2022. This is a significant drop from the 3.3% recorded in November last year.
Edmunds’ head of analysis suggests that Elon Musk’s ongoing political commentary and involvement in government-related issues are causing some long-term Tesla owners to lose their loyalty to the brand. As a result, the once-solid base of brand loyalty is beginning to show cracks.
Recently, public backlash against Musk has spilled into the streets. Protests condemning Musk have occurred outside some Tesla stores and charging stations across the U.S.; criticism of his political actions is gaining traction. Musk, who played a key role in reducing government staffing during the Trump administration, is facing renewed scrutiny as his past political actions are being revisited, further fueling negative public opinion.
This growing backlash seems to be impacting Tesla’s sales as well. Shipments of Tesla vehicles have noticeably decreased in key markets such as Europe and China.
Tesla’s stock price is also under pressure. After a sharp rise following last year’s U.S. presidential election, it dropped over 40%, erasing most of its prior gains. Market analysts are concerned that restoring investor confidence could prove challenging.
