The bad news continues for Elon Musk: Tesla users are switching to other car manufacturers at record levels

Elon Musk has become President Donald Trump’s right-hand man, as the administration reshapes the federal government, leading to a wave of mass layoffs and the elimination of federal programs.

As the owner of Tesla, Elon Musk’s business has become a target of protestors upset with the actions being taken at the federal level, many of which have been promoted by the billionaire. The Trump administration has made clear that attacks on Tesla are being considered acts of terrorism, given Musk’s prominence within the federal government. However, not all those protesting Tesla have attacked property, and many simply show up with signs.

Shareholders have been sounding the alarm that Musk’s decreasing popularity among potential customers is hurting the electric vehicle company, not only in the US but markets around the world.

A new analysis from Edmunds, the online shopping platform, shows that in March, the highest number of Tesla owners on record have opted to trade their model in for a new or used car of another brand, including Ford, Chevrolet, and Volkswagen. The report attributes this trend to growing social discontent and a loss of confidence in the brand, driven by Musk’s role in the Trump administration, where he currently serves as the Director of the Department of Government Efficiency (DOGE).

In an e-mail to CNBC, Jessica Caldwell, who serves as Edumund’s head of insights, that the move away from Tesla is giving other automakers a chance to gain customers in the car market, and those competitors are taking advantage of the moment by “offering competitive pricing, new technology, or simply less controversy could capture defecting Tesla owners and first-time EV buyers.”

Tesla stock has taken a hit since President Trump’s return to Washington

So far this year, Tesla’s stock has dropped 42%, reflecting growing investor uncertainty. Nevertheless, the stock price is still up more than 60% compared to the value recorded one year ago, when Musk began to align himself more closely with President Trump.

To make matters worse, the company has become the target of protests and vandalism at various facilities, not just in the U.S. but internationally. Meanwhile, as Tesla struggles, brands like Ford, Chevrolet, and Volkswagen continue to gain ground in the EV market. Tesla will release its next quarterly report in a month, which will be an important indicator of how Musk’s entrance into far-right politics is impacting his company’s bottom line.

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This article was originally written in Spanish by Daniela Barrera, translated with the help of AI, and edited by Maite Knorr Evans.