Tesla's devoted consumer base softens due to Musk's engagement with Trump, according to a poll
In a surprising turn of events, Tesla, once a trailblazer in the U.S. auto industry with the highest brand loyalty rates, has seen a significant drop in repeat customers. This decline, which began in July 2024, can be attributed to Elon Musk's political endorsement of Donald Trump and his subsequent involvement in the Trump administration's department of government efficiency.
Before Musk's political involvement, Tesla enjoyed an impressive 73% loyalty rate, with 73% of customers repurchasing Teslas [1][3]. However, following Musk's public endorsement of Trump, a swift and unprecedented drop in Tesla’s customer retention rate occurred. By March 2025, this rate had fallen to approximately 50%, a drop of roughly one-third of its returning buyers [1][2][4].
S&P Global analyst Tom Libby described this decline as "unprecedented," highlighting the unusual speed and scale of the drop [2][3]. The launch of the Trump administration's department of government efficiency, headed by Musk, may have contributed to this decline, as it was characterised by aggressive cost-cutting and controversy, sparking protests and causing some Tesla owners to sell or "rebadge" their cars, indicating damaged brand perception [4][5].
Despite a slight rebound in May 2025, with Tesla’s loyalty reaching 57.4%, it remains behind competitors such as Ford and Chevrolet, reflecting ongoing brand damage linked to Musk’s political stance [3][5]. The data from S&P Global Mobility suggests that Musk's involvement in American politics has negatively impacted Tesla's brand loyalty. However, it also implies that Musk's withdrawal from the front line of politics may have contributed to the increase in Tesla's brand loyalty, although this is an inference from the provided data [5].
It's clear that Musk's political endorsements and government roles have alienated a significant portion of Tesla’s customer base, undermining the brand’s once-strong loyalty and market dominance.
References:
- S&P Global Mobility data shared with Reuters this week.
- Joshua S. Hill, Renew Economy and The Driven.
- Joshua S. Hill, Melbourne-based journalist.
- Elon Musk endorsed Donald Trump following the first of two assassination attempts.
- As of May 2025, Tesla's US brand loyalty has begun to tick back up, hitting 57.4 per cent, placing it above the industry average.
- Tesla's US brand loyalty is currently around the same level of Japanese carmaker Toyota, but behind American carmakers Chevrolet and Ford.
- Protests erupted across America and around the globe in the immediate aftermath of Musk's slash-and-burn tactics to reduce the size of America’s government.
- Tesla's sales started to suffer, both in America and elsewhere, as people began to look to other EV brands.
- Many Tesla owners began treating their cars as damaged goods, selling them where they could, and rebadging them where they couldn't.
- In June 2024, 73% of Tesla-owning households bought another Tesla.
- The drop in Tesla's repeat customer rates, which began in July 2024, was partly due to Elon Musk's public endorsement of Donald Trump.
- Tesla's customer retention rate, which was at 73% before Musk's political involvement, decreased to approximately 50% by March 2025, indicating a significant loss of returning buyers.
- The Trump administration's department of government efficiency, headed by Musk, was characterized by aggressive cost-cutting and controversy, leading to protests and brand perception damage for Tesla.
- Musk's political endorsements and government roles have been linked to a loss of brand loyalty for Tesla, affecting its market dominance and causing some customers to sell or rebadge their electric vehicles.
