Significant pressure has been placed on Tesla’s once-impressive reputation for brand loyalty. According to S&P Global Mobility, Tesla’s customer loyalty rate reached a peak of 73% in mid-2024 but fell to 49.9% by March 2025. Elon Musk’s vocal support of Donald Trump coincided with that steep decline, creating a conflict between Tesla’s corporate identity and its liberal, mostly eco-aware clientele.
How Quickly Did the Loyalty Rollercoaster Drop?
Examine the timeline in order to completely understand the brand fallout:
June 2024: The auto industry’s highest loyalty rating in the United States, at 73%
July 2024: Following Trump’s survival of an assassination attempt, Musk endorses him; the loyalty rate instantly starts to decline.
January–March 2025: Musk is appointed head of Trump’s Department of Government Efficiency (DOGE), where he is in charge of massive federal layoffs; by March, loyalty has fallen to 49.9%.January–March 2025: Musk is tapped to lead Trump’s Department of Government Efficiency (DOGE) and oversees widespread federal layoffs; loyalty hits bottom at 49.9% by March
May 2025: Although loyalty slightly improves to 57.4%, it still lags well behind market leaders Ford and Chevrolet and is not comparable to Toyota.
S&P analyst Tom Libby calls this “unprecedented”—in less than a year, Tesla moved from leading the industry in retention to just matching mainstream automakers.
Political Repercussions and Polarization as the Causes of Loyalty’s Decline
Musk’s DOGE Role and Trump Support
Many Tesla customers were taken aback by Musk’s apparent support for Trump, particularly after he openly endorsed him in July 2024. He further alienated Tesla’s leftist and moderate audience by leading DOGE, President Trump’s federal efficiency agency that cuts federal spending, and firing thousands of public employees.
EV Opposition Is Driven by Political Polarization
According to research published in Nature, Musk’s political image disproportionately alienated liberals, which decreased interest in EVs in general as well as Tesla purchases. There was no commensurate rise in Tesla affiliation among conservatives, indicating that political advantage was not reciprocated.
Market Behavior: Public Opinion, Protests, and Boycotts
3.1 Buying Patterns: Buying and Selling
In response to Musk’s activities, 31% of Tesla owners polled by early 2025 stated they had sold or were thinking about selling their vehicle. Prominent individuals like as Senator Mark Kelly and celebrities publicly said that they were disposing of Tesla automobiles.
rivals Brand loyalty for Tesla
Elon Musk Trump’s support
Tesla’s declining consumer loyalty
Tesla’s declining loyalty rate
Impact of the Tesla boycott
Tesla’s political standing
Following Musk’s politics, Tesla sales have decreased.
In the meantime, former Tesla owners started to gravitate toward other EV companies including Rivian, Polestar, Porsche, and Cadillac, reversing Tesla’s previous supremacy in inflow.
The Takedown Movement for Tesla
To promote divesting from the company and its stock, the grassroots “Tesla Takedown” campaign started rallies outside Tesla showrooms across the globe, including in the US, Europe, Canada, and other countries. This led to ongoing animosity toward Tesla, and demonstrations persisted even after Musk had left his position at the DOGE.
According to marketing expert Scott Galloway, Tesla’s decline from ninth to 95th in Axios-Harris reputation surveys between 2021 and 2025 is “one of the greatest brand destructions of all time
Declining Revenue and Earnings
In Q2 2025, Tesla’s worldwide sales dropped 13% year over year to 384,122 automobiles, mostly as a result of customer boycotts. May saw a 28% decline in sales across all markets as competitors jumped in, especially BYD in Europe.
Additionally, Q2 revenue fell 12% and net income fell 16%, showing a decline in profit margins.
Restricting the Acquisition of Customers
It used to win about five new homes for every one that was lost, but by early 2025, that ratio had dropped to less than two in, one out, placing Tesla on pace with traditional automakers. The net migration advantage vanished, and the market for new purchasers declined.
One example of how leadership actions can override product excellence is the sharp decline in Tesla’s brand loyalty, which went from a peak of 73% to 49.9%, almost bottoming out. Tesla’s primary audience was alienated by Musk’s support of Trump, which was followed by his involvement with the DOGE efficiency agency and budget cuts. This caused widespread opposition from a variety of demographic groups.
Rebuilding confidence with its initial customer base is crucial to Tesla’s future recovery. Musk may need to reduce his political presence, boost product development (particularly for low-cost EVs), and regain the trust of customers in areas where the harm has been greatest, such as California, Europe, and Australia.
Tesla has the risk of continuing to be a mediocre player in EV retention—no longer the loyalty leader it once was—if its leader’s reputation is not restored or if its futuristic goals, like robotaxis, are not successfully implemented.
Digital Repercussions: Hashtags, Social Media, and Image The fallout
The digital realm turned into a battleground as Tesla’s brand loyalty fell. Backlash against Elon Musk and Tesla erupted on social media sites like Instagram, Reddit, TikTok, and X (previously Twitter). By the hashtags like #ElonKillsTesla, #DumpTesla, and #BoycottTesla were trending all around the world.
Videos of people trading in Tesla vehicles, deleting Tesla insignia, and canceling orders were uploaded by users. Some influencers even went so far as to document their transition to electric rivals such as the Kia EV6, BMW i4, and Lucid Air. The perception that Tesla was now “politically weaponized” was strengthened by this tendency, which had a substantial negative impact on the company’s internet reputation.
Global Markets Respond: Canada, Australia, and Europe
far if Tesla was criticized in the US, Musk’s actions caused far more negative reactions in foreign regions. Tesla’s reputation quickly deteriorated in Europe, where consumers place a high value on political neutrality and climate commitment.
Q2 2025 deliveries in Germany, Tesla’s biggest European market, decreased 35% from the previous year. Former Tesla market share was taken by Chinese EV manufacturers BYD and NIO, as well as Volkswagen and Mercedes-Benz. More than 40% of former Tesla owners in France and Scandinavia said they would “never purchase another Musk-associated brand,” according to studies.
- How loyal were Tesla’s customers before and after Musk backed Trump?
Tesla had the highest loyalty rate in the US vehicle sector in June 2024, at 73%. It fell to 49.9% by March 2025 as a result of Musk’s political actions, which was one of the worst drops in brand loyalty in recent automotive history.
Did Musk’s employment with Trump’s DOGE agency cause Tesla to lose clients?
Of course. More criticism resulted from Elon Musk’s leadership of Trump’s DOGE (Department of Government Efficiency), which included political reform and federal layoffs. Customers who care about the environment and social justice become more critical of this.
- In 2025, which EV brands are Tesla owners moving to?
Rivian, Polestar, Lucid Motors, Hyundai, Kia, Volkswagen, and BYD are among the EV brands that former Tesla consumers are switching to. Customers seeking sustainability, creativity, and neutrality free of political connotations are gravitating toward these brands.
- What is and how did the Tesla Takedown movement begin?
A global protest campaign known as the “Tesla Takedown” is calling on people to stop investing in Tesla because of Elon Musk’s political views. Protests, internet campaigns, and symbolic Tesla trade-ins took place in the U.S., Canada, Europe, and Australia starting in late 2024.
In 2026 and beyond, will Tesla be able to regain its brand value and consumer loyalty?
Yes, but a solid product innovation strategy, restoring public confidence, and minimizing political distractions are all necessary for revival. To regain lost consumers and rebuild its reputation, Tesla needs to put more of an emphasis on affordability, sustainability, and technological leadership.
THANK YOU