Amidst growing discontent, Tesla is experiencing a substantial backlash that has significantly impacted its sales figures. The controversy surrounding CEO Elon Musk's political affiliations and certain government projects he supports have sparked protests globally. This unrest has translated into a notable decline in electric vehicle (EV) sales, reaching up to 76 percent in some regions. Additionally, both potential buyers and current owners are distancing themselves from the brand, as evidenced by record numbers of trade-ins recorded in March 2025.

Elon Musk’s alignment with right-wing political figures, including former President Donald Trump, has ignited demonstrations worldwide. These protests involve acts of vandalism against Tesla vehicles and dissatisfaction with Musk’s initiatives like the "Department of Government Efficiency," which has led to mass layoffs and concerns over Social Security cuts. Furthermore, Musk’s controversial gestures have also harmed Tesla’s market standing. The repercussions include a dramatic drop in EV sales across various markets. According to data from Edmunds, an online car inventory platform, Tesla trade-ins surged dramatically in March 2025 compared to previous months.

Data indicates that Tesla models manufactured since 2017 accounted for 1.4 percent of all traded-in vehicles by mid-March, marking a significant increase from the previous year when they only constituted 0.4 percent. Analysts predict this figure will continue rising as more trade-in data becomes available later in the month. Moreover, February saw Tesla comprising 1.2 percent of all trade-ins, indicating a consistent upward trend. Importantly, these statistics exclude instances where customers traded their Teslas for newer models within the same brand.

Interest in purchasing new Tesla vehicles has plummeted to its lowest point since October 2022. Presently, only 1.8 percent of car shoppers consider buying a Tesla, down from a peak of 3.3 percent last November. Concurrently, the resale value of used Tesla cars has depreciated by approximately 10 percent, a steeper decline compared to other automotive brands. This depreciation underscores the broader impact of Musk’s actions on consumer sentiment towards Tesla products.

The escalating trade-in rates and declining interest highlight a shift in public perception regarding Tesla. As consumers reassess their loyalty to the brand, the company faces challenges in maintaining its market position. With ongoing global reactions to Musk’s political involvements and associated controversies, Tesla must navigate a complex landscape to restore consumer confidence and stabilize its sales trajectory.