Key Points
- Tesla’s customer loyalty rate has fallen dramatically since its peak in June 2024.
- The sharp decline began in July 2024, immediately after Elon Musk endorsed Donald Trump.
- Loyalty dropped from a high of 73% to below 50%, falling below the industry average at its lowest point.
- The loyalty drop coincides with falling Tesla sales in both the U.S. and Europe.
Tesla’s once-unbeatable customer loyalty has taken a nosedive, and new data pinpoints when the trouble started: right after CEO Elon Musk endorsed Donald Trump last summer. For years, more Tesla owners bought another Tesla than any other car brand, but that loyalty is now fading fast.
According to exclusive data from S&P Global Mobility, Tesla’s loyalty peaked at an industry-leading 73% in June 2024. That means nearly three-quarters of Tesla-owning households in the market for a new car chose another Tesla. But that rate began to crater in July, immediately following Musk’s endorsement. It bottomed out at just under 50% in March, falling below the industry average.
An S&P analyst called the rapid decline “unprecedented,” stating he had “never seen this rapid of a decline in such a short period of time.”
While Musk’s politics appear to be a major factor in turning off the brand’s eco-conscious customer base, it’s not the only problem.
Tesla is also struggling with an aging lineup of cars and faces tough new competition from other EV makers like GM, Hyundai, and BMW. The company’s only new model since 2020, the controversial Cybertruck, has also failed to meet sales expectations.
The drop in loyalty is having a real impact. Tesla’s overall sales are falling in the U.S. and have declined sharply in Europe, where public backlash to Musk’s political moves has been especially strong. Analysts say the timing couldn’t be worse, as the brand damage is happening just as competition is heating up.
