Consumer Sentiment Shifts
Tesla trade-ins reached a record high in March, with 1.4% of vehicles traded in being from model year 2017 or newer, signaling a notable shift in consumer sentiment.
The decline in brand loyalty is attributed to 's controversial role in the Trump administration, concerns over Tesla's vehicle depreciation, and increased competition in the EV market.
Market Impact and Future Prospects
Amidst declining interest, Tesla's stock has seen a significant drop, and the company faces a "dark brand crisis tornado" that analysts believe only Musk can navigate.
Competitors may benefit from Tesla's waning brand loyalty, as EV startups and legacy automakers offer competitive pricing, new technology, or less controversy, potentially capturing former Tesla owners and first-time EV buyers.