Tesla Faces Its Largest Customer Exodus in the U.S. Amid Political Controversies and Safety Failures

For the first time since its rise as the leader in the electric vehicle market, Tesla is facing a troubling trend: a growing number of owners in the United States are choosing to replace their vehicles with models from competing brands. This shift in consumer behavior comes at a particularly controversial time for the company’s CEO, Elon Musk, who has strengthened his ties with former president Donald Trump and adopted increasingly extreme political positions.

According to data revealed by Edmunds, a firm specializing in automotive market analysis, in March 2025 the percentage of Tesla owners who traded in their vehicles for those from rival brands reached its highest level to date.

Comparatively, while in March 2024 only 0.4% of vehicle trade-ins involved Teslas, that figure tripled to 1.4% in the same month of 2025. This significant increase reflects a shift in public perception of the brand—an evolution that could have major implications for its market positioning.

“The change in consumer sentiment toward Tesla may create opportunities for traditional automakers and new EV startups to gain ground,” said Jessica Caldwell, head of research at Edmunds, in an interview with CNBC.

In addition to the rising customer defection rate, searches for Tesla vehicles on Edmunds’ digital platform fell to their lowest point since October 2022. This trend reinforces the idea that interest in the brand is waning—not only in showrooms but also in digital spaces, where many purchasing decisions begin.

Related: Protests Against Tesla Show Results: Showroom at Montgomery Mall Closes, Stock Plummets

According to some experts, this loss of appeal cannot be separated from Musk’s growing political involvement. Recently, the mogul was appointed director of the Department of Government Efficiency (DOGE), an entity backed by Trump’s circle and known for promoting the elimination of federal agencies and the dismissal of thousands of public employees.

Analysts believe this connection may be undermining the progressive and futuristic image Tesla had cultivated over the years. Musk has also ramped up his public support for far-right parties in both America and Europe, creating confusion even among his most loyal followers.

Meanwhile, as if the situation weren’t complex enough, Tesla has become embroiled in a new technical scandal that calls its reliability as a manufacturer into question. On Thursday, the National Highway Traffic Safety Administration (NHTSA) ordered the recall of more than 46,000 units of its Cybertruck pickup after identifying a potentially dangerous structural defect.

Specifically, an exterior panel along the edges of the windshield—known as the applique or “sail rail”—was found to be at risk of detaching while driving, posing a serious hazard to other vehicles on the road.

The NHTSA explained that the part is affixed with structural adhesive which, although it hasn’t shown environmental fragility in tests, requires additional reinforcement to ensure safety. As a solution, Tesla will replace the components at no cost to customers, with official recall notices expected to be sent out starting May 19, 2025.