Tesla Loyalty Plummets Amid Musk's Political Maneuvers
Tesla's customer loyalty in the U.S. has seen a steep decline since CEO Elon Musk publicly endorsed Donald Trump, contrary to its leading market presence. As new competition emerges, Tesla's dedication to politics and self-driving technology instead of affordable models has alienated its eco-conscious base.
Tesla, once hailed for its unparalleled customer loyalty, is witnessing a sharp decline in support among U.S. buyers following CEO Elon Musk's controversial political endorsements. According to research data from S&P Global Mobility, Tesla's brand loyalty peaked in June 2024, with 73% of Tesla owners buying another vehicle from the brand.
However, loyalty took a nosedive in July, coinciding with Musk's endorsement of Donald Trump. The first quarter of 2025 saw a 49.9% loyalty rate, falling below industry standards, only to recover slightly to 57.4% by May. Industry analysts attribute the drop to Musk's shift in focus towards political activism and self-driving technology over new consumer models.
Competitors, including Rivian, Polestar, and Cadillac, are attracting Tesla's customer base, as loyalty figures reach their lowest levels. This phenomenon poses a challenge as Tesla's sales decline globally, especially as Musk's strategies alienate some traditional buyers. Analysts suggest Tesla must address its market share loss and brand image to regain footing.
(With inputs from agencies.)
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