As protests at many Tesla showrooms become a daily occurrence and those who own the automaker’s products find themselves routinely given thumbs-down or an extended middle finger, more and more are trading in, according to new data. But they’re finding residual values for used Teslas have come crashing down. That’s something competitors such as Lucid and Polestar hope to take advantage of, as Headlight.News reports.
A dozen Teslas were torched at a dealership in France.
Until recently, William was proud to be seen driving his Tesla Model 3. He was an early buyer and enjoyed the thumbs up and praise he got from his liberal and environmentally minded friends. Lately, however, things have changed for the worse. He now gets frequent scowls, thumbs down or even an extended middle finger as he drives around his home in a suburb of Detroit.
That’s got the ad agency manager ready to trade in on something a bit less controversial. “I’d like to, anyway, but I owe too much on my loan and will lose money if I trade in now,” said William, who asked not to be identified by his full name as he prefers to stay out of anything remotely political.
The problem is that Tesla owners have clearly found themselves in the midst of a political brouhaha triggered by the automaker’s CEO Elon Musk’s close ties to President Donald Trump and his controversial role as the head of the Department of Government Efficiency, or DOGE. Now, many want out, and that could be good news for the competition.
Protests mount – and owners are collateral damage
Musk critics are calling for protests at more than 500 Tesla showrooms around the world on March 29.
As many as 400 people rallied outside the Tesla showroom at the Somerset Mall in Troy, Michigan over the weekend, one of dozens of protests targeting the automaker’s dealerships across the U.S. and in many parts of Europe. A group calling itself the “Tesla Takedown” is calling for large protests to take place on March 29 at more than 500 Tesla dealerships around the world.
Most of the gatherings have been peaceful, if loud, but a handful of gotten out of hand, with police called out in several instances, including a protest in Chicago earlier in March. There’ve also been a number of incidents involving vandalism, typically late at night. A dozen Teslas were torched at a company-owned store in Toulouse, France. Stores in a number of cities around the U.S. have reported arson and gunshots.
Tesla owners like William, meanwhile, have been caught in the crosshairs. In most instances that appears to come in the form of derisive comments or extended middle fingers. But there’ve been growing reports of Tesla vehicles that have Nazi swastikas scratched into or spray painted onto them. That’s become especially common with Cybertrucks, the all-electric pickup seen by many as the symbol of CEO Musk’s politics.
Owners race to trade in
Lucid is one of several automakers openly reaching out to Tesla owners looking to trade in.
The protests — along with pushback from the sort of liberal and green-minded buyers who traditionally made up the bulk of Tesla sales – are clearly having an impact. Sales around the world have gone into a tailspin. Demand plunged by half in Europe during the first two months of this year, according to trade association data, with Germany down 76%. Sales fell 59% last month in China. And the figures are expected to be off by double digits in the U.S. when Tesla reports next month. Worldwide, JPMorgan analysts have reduced their Q1 sales target by 20%, from an already weak 444,000 to 355,000.
It’s not only those who might have been thinking about buying Tesla products who are backing away. This month is seeing the largest number of Tesla trade-ins, according to data gathered by tracking service Edmunds.com. A year ago, used Teslas made up just 0.4% of the total number of vehicles being traded in at U.S. dealers. That surged to 1.4% during the first half of March and Edmunds expects that to rise during the second half.
Making matters worse, at least for sellers, they’re seeing trade-in values plunge, used Teslas now going for an average $30,000, about $10,000 less for comparable non-Tesla EVs, according to CarGurus. Several U.S. owners contacted by Nikkei said on background that they were considering selling their vehicles but can’t afford to because they’re “under water.” They still more on their loans than they’d get for the EVs.
“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,” Jessica Caldwell, Edmunds’ director of insights, said in a statement.
More Tesla News
- Musk Under Growing Pressure to Quit Trump or Leave Tesla
- Tesla Recalls Cybertruck for the Eighth Time for Flyaway Body Panels
- The “Musk Effect”
Polestar is offering as much as $20,000 in discounts and incentives on Tesla trade-ins.
The competition cashes in
Even before Musk first waded into hardcore politics with his October 2022 acquisition of Twitter – since renamed X – the automaker was losing market share. That was no surprise, said analyst Sam Abuelsamid, head of data for Telemetry Research. There simply was more competition nibbling at the pie. And, sensing blood, those competitors are growing more aggressive.
A since-deleted ad posted by the Norwegian Tesla subsidiary featured an image of a Model Y with a bumper sticker declaring “I bought this Elon went crazy.”
“Calling all Tesla owners,” reads an ad by EV start-up Polestar, announcing incentives of up to $20,000 for those trading in “any Tesla model.” Lucid has been pitching a more modest $4,000 offer for Tesla owners who trade in by March 31.
“As Tesla brand loyalty and interest wavers, those offering competitive pricing, new technology or simply less controversy could capture defecting Tesla owners and first-time EV buyers,” said Caldwell.
Such deals could help soften the sting of being “upside-down,” Tesla owners owing more on their vehicles than they’d otherwise get on a normal trade-in. Whether that further impacts the embattled automaker’s sales is yet to be seen, however.
Paul,
Too many spelling/grammar errors. Your smile is getting in the way.