It would be a lie to say Elon Musk entering the political ring hasn’t hurt his business.
Tesla’s impact on the used car market is becoming undeniable, as a growing number of owners are deciding to part ways with their vehicles. This shift in consumer behavior has led to a notable decline in the resale value of Teslas. According to sales data, the prices of used Teslas have dropped significantly, with the average used Tesla now going for $10,000 less than cars from competing brands.
This trend comes at a time when Tesla’s CEO Elon Musk is increasingly involved in politics, serving as a key adviser to former President Donald Trump. While Musk’s influence continues to grow, particularly as head of the Department of Government Efficiency, it seems his political activities have had unintended consequences for the brand he built. As Musk’s political profile rises, Tesla’s stock has been slipping, reflecting a broader cultural and financial backlash.
Reports from market tracking sites like CarGurus reveal that Teslas have become the most common electric vehicles on the used market. In 2024, major companies like Hertz were listing tens of thousands of Teslas for resale. Currently, over 14,000 used Teslas are available across the United States, with most selling for around $30,000—down from an average of $70,000 just two years ago. This drop in price has been linked to Musk’s increasing involvement in political matters, which some consumers find off-putting.
In cities like San Francisco, a hotbed for tech professionals, many owners are trading in their Teslas for other vehicles. Local dealerships report a noticeable uptick in Tesla trades, with some offering five Tesla trade-ins per week. Celebrities are also joining in; singer Sheryl Crow publicly distanced herself from the brand, criticizing Musk’s politics and aligning herself with groups like NPR, which she says is “under threat by President Musk.”
This discontent isn’t limited to the U.S. European demand for Teslas has fallen sharply in countries like Germany, the Netherlands, and Spain, largely due to the increasing backlash against Musk’s political maneuvering. In fact, protests against Musk’s association with former President Trump and his controversial actions have even led to demonstrations in Europe, including comparisons of Musk’s gestures to Nazi-era symbols.
A recent study in the Netherlands found that 30% of Tesla owners were considering selling their cars, citing Musk’s political behavior as the primary reason for their decision. As this discontent grows, former President Trump has pledged to support Musk, calling for stronger protections for American businesses like Tesla from those he views as undermining them. It remains to be seen whether Musk’s continued political influence will further affect Tesla’s brand and its market position, or if his role in government and the business world can help him weather this storm.