Tesla's Brand Loyalty Faces Dramatic Shift Amid Political Influences
Tesla's brand loyalty plunged following CEO Elon Musk's political endorsements, reaching a low of 49.9% in March 2025. Despite regaining some ground by May, Tesla faces stiff competition from other EV makers and challenges from Musk's political activism. Customer defections further threaten its market position.
Tesla, once renowned for unparalleled customer loyalty, has experienced a substantial decline in repeat U.S. buyers, according to exclusive data from S&P Global Mobility. The data reveal a drop following CEO Elon Musk's endorsement of President Donald Trump during summer 2024.
In an unprecedented nosedive, Tesla's loyalty rate plummeted to 49.9% last March, below the industry average, before climbing back to 57.4% by May. Analysts attribute the decline to Musk's political involvement, which alienated eco-conscious consumers, and increasing competition from legacy automakers and new EV entrants.
The fallout from Musk's active political engagement, coupled with aging Tesla models and fierce competition, poses significant challenges. The electric vehicle giant's market share and brand image must be addressed to reclaim its previous dominance, experts warn, as S&P data highlights a worrisome trend in Tesla's customer retention rates.
(With inputs from agencies.)
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