Discontent with Elon Musk drives Californians to trade in Teslas

In recent months, California has witnessed a significant surge in the number of Tesla owners trading in their vehicles. A report by Edmunds, a car shopping website, revealed that this month saw a nearly 250% increase in trade-ins when compared year over year. Many former Tesla owners cited their disillusionment with CEO Elon Musk as a primary reason for their decision to part ways with the electric vehicles. One individual expressed feelings of disgust towards Musk, particularly regarding his affiliation with the Trump administration, leading them to explore alternative options in the EV market. By March 2024, Tesla made up 1.3% of trade-ins for new or used vehicles sold in dealerships, though this figure dropped to 0.8% the following month. By March 2025, trade-ins increased to 4.5%. This fluctuation in trade-in data reflects the brand's relatively short history in the market, leading to some customers looking for alternatives. With the increase in competitive EV manufacturers, many Tesla buyers are eyeing brands like Lucid Motors, which has reported a notable uptick in orders from former Tesla drivers. Lucid's CEO stated that approximately fifty percent of their orders have come from those who previously owned Teslas. Tesla's stock has faced its sharpest decline since 2022, dropping by 36% in the first three months of the current year. In the same period, Tesla's sales in the US fell by 11%, which is contrary to the overall upward trend in EV sales. Current buyers are opting to trade in their Model 3s for Lucid's Air sedan, often paying up to twice as much. Meanwhile, competition is increasing, as other automakers expand their EV offerings. This situation is further fueled by rising tensions surrounding Elon Musk's political involvement and public perception of Tesla owners. Some former customers have reported feeling targeted on the road and have expressed concern over how they are perceived while driving their Teslas. There have even been instances of demonstrations against Tesla dealerships, spearheaded by anger towards Musk and his political stance. As competition grows, it seems that Tesla's market share, particularly in California, is not impenetrable, with many potential customers seeking more than just brand recognition when purchasing an electric vehicle.