Business Insights and Market Implications

Key Data Points:

Tesla Trade-ins:
- March 2024 trade-ins accounted for 1.4% of all vehicles traded in (up to March 15), up from 0.4% in March 2023.
- February 2024 saw Teslas making up 1.2% of vehicles traded in, the highest share since Trump's election.
Used Tesla Prices:
- Prices have dropped alongside other EVs (e.g., Ford, Kia, Hyundai).
- Edmunds predicts further declines as reconditioned Teslas enter the market.
Consumer Sentiment:
- Consideration for new Teslas dropped to 1.8% in March 2024, the lowest since October 2022.
- Sales estimates suggest a 10% decline in February 2024 for Tesla vehicles (Cybertruck, Model 3, and Model Y).

Declining Brand Loyalty:
- Tesla owners are trading in their vehicles due to anger over Elon Musk's role as a Trump advisor.
- Social media posts and "Tesla Takedown" demonstrations indicate growing dissatisfaction.
Competitive Opportunities:
- Legacy automakers and EV startups could gain market share as Tesla's brand loyalty wavers.
- Competitors offering competitive pricing, new technology, or less controversy may attract defecting Tesla owners and first-time EV buyers.

Stock Performance:
- Tesla stock dropped by nearly half from its January peak following Trump's election.
- Market expectations for robotaxis under the Trump administration have not materialized.

Government Intervention:
- Trump has labeled attacks on Tesla as potential domestic terrorism, indicating possible regulatory scrutiny.
Brand Image Risk:
- Damage to showrooms and charging stations, along with negative media coverage, could harm Tesla's long-term brand reputation.

Reputation Management:
- Tesla needs to address public backlash and restore trust among customers and stakeholders.
Market Positioning:
- Competitors are poised to capitalize on Tesla's weakened position, particularly in the EV market.