6 days ago
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An unprecedented number of Teslas were traded-in across the United States in February – and the number continues to grow.
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Motorists in the United States traded-in a record number of Tesla electric vehicles in February 2025 – the first full month since CEO Elon Musk began his government role at The White House – with the number increasing for the first half of March.
According to Reuters, data from automotive research outfit Edmunds saw Tesla make up 1.2 per cent of all vehicles traded-in across the United States (US) in February 2025 – a record amount.
The figure is triple the proportion of Tesla trade-ins the previous February, when the US brand’s electric cars made up 0.4 per cent of trade-ins.
From March 1-15, 2025, the trend increased to 1.4 per cent with the full 31-days of March on track to see more Tesla’s traded-in than ever.
The increase in motorists trading in their Tesla did not coincide with an increase in new vehicle sales for the brand.
Tesla’s US sales fell 10 per cent in February according to Cox Automotive, with lower sales on all Tesla models – including the Tesla Cybertruck.
The fall came despite a February record across the industry for sales of new electric vehicles in the US (95,692), although the Tesla Model Y SUV and Tesla Model 3 remained the two best-selling electric cars ahead of the Ford Mustang Mach-E SUV.
Edmunds told Reuters the increase in trade-ins comes following Tesla CEO Elon Musk becoming part of President Trump’s administration, with Mr Trump sworn into office on 20 January 2025.
“Brand loyalty is becoming a bigger question mark as factors such as Elon Musk’s increasing public involvement in government, Tesla depreciation concerns and its increased saturation in major metro areas leave some longtime owners feeling disconnected from the brand," Jessica Caldwell, Edmunds’ head of insights, told Reuters.
The news comes following Tesla’s first global sales decline in 2024 – including in Australia, where slower sales still saw the US brand remain the best-selling electric car maker, led by the Model Y and Model 3 sedan.
The downward slide has accelerated in 2024, with Tesla sales in Australia falling 72 per cent month-on-month in February 2025 for a combined 65.5 percent fall in the first two months of this year – with 2355 Teslas sold compared to 6772 in the first two months of 2024.
February 2025 sales of new Teslas in Australia were the car maker’s lowest in two years.
In China – where Australian-market Teslas are manufactured – the car maker posted a 49.16 per cent year-on-year sales fall in February.
“As a successful businessman, one should be embracing 100 per cent of the market: Treat everyone nicely, and everyone will be nice in return,” the secretary-general of the China Passenger Car Association (CPCA), Cui Dongshu, said in a press briefing according to Bloomberg.
“But if you look at it in terms of voting, then half of voters will be friendly to you and half of them won’t be … This is the unavoidable risk that’s come after he [Mr Musk] got his personal glory.”
In Europe, Tesla’s February sales slumped 44 per cent year-on-year, following a 45 per cent fall in January.
The sharpest fall came in Germany – where Tesla builds cars on the outskirts of the capital, Berlin – with month-on-month falls of 59.5 per cent and 76.5 per cent in January and February respectively.
“When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent to Musk might think twice about buying a Tesla,” Ben Kallo, an analyst at Baird, told CNBC.
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