Tesla Trade-Ins Hit Record High as Musk Urges Employees to Hold Stock

Tesla trade-ins are trending

Edmunds data shows that drivers are trading in Teslas at a record rate amid backlash toward the EV maker’s CEO, Elon Musk, and his work alongside President Trump as an advisor. Teslas from 2017 or newer model years represented 1.4% of all vehicle trade-ins until March 15th, a 0.4% increase year-over-year that equals its highest-ever share, Reuters reports. Edmunds analysts note that this percentage could increase during the second half of March. In February, Tesla accounted for 1.2% of all trade-ins. What’s even more concerning for Tesla is that Edmunds’ data doesn’t account for direct-to-consumer sellers. Shopping rates for new Teslas on Edmunds also dropped to their lowest level since October 2022 in February, following a November peak.

“Brand loyalty is becoming a bigger question mark as factors such as Elon Musk’s increasing public involvement in government, Tesla depreciation concerns, and its increased saturation in major metro areas leave some longtime owners feeling disconnected from the brand,” Jessica Caldwell, Edmunds' head of insights said in an interview with Reuters. Caldwell added that the public’s waning Tesla interest opens the door for other EV makers to gain new fans with lower prices, new technology, and cleaner brand images. If one thing’s for sure, it's that whatever Musk does, it’s under a microscope. Edmunds data from August revealed that only 2% of car shoppers were unfamiliar with Elon Musk, according to NBC. Recently, Tesla stores, vehicles, and charging stations have been subject to targeted attacks, including vandalism and arson.

Musk isn’t worried…or has a great poker face

Musk is standing his ground amidst this turmoil, as last night, the Tesla CEO urged employees not to sell stock in the company during an all-hands meeting publicly streamed on X, formerly Twitter, marking the first time Tesla publicly broadcasted an all-hands company meeting. During the meeting, Elon Musk promised an exciting future with the company’s dedication toward developing autonomous driving and robotic technology, which he also emphasized during the last Tesla annual shareholder meeting in June.

“There are times when there are rocky moments,” Musk said, according to The Guardian, before adding, “but what I’m here to tell you is that the future is incredibly bright and exciting, and we’re going to do things that no one has even dreamed of." One of Musk’s boldest claims during the X broadcast was that Tesla would be the world’s most valuable company by a long shot. 

While Musk aimed to mitigate employee worries, with Tesla’s stock declining over 40% this year, some of the company’s top executives and board members are dumping tons of shares. Tesla’s Board Chair, Chief Financial officer, and three board members offloaded over $163 million worth of stock, or 468,056 shares, according to Electrek. These executives and board members include but aren’t limited to Tesla’s Chief Financial Officer, Vaibhav Taneja, and board member James R. Murdoch, son of media tycoon Rupert Murdoch.

Final thoughts

Tesla is anticipated to have its worst quarter in three years. If it does, Elon Musk will have his work cut out for him when handling the company’s annual shareholder meeting, which will be right around the corner unless it’s delayed. As mentioned, last year’s shareholder meeting occurred in June, while 2023’s took place in May. Tesla will likely need to break news of significant steps toward its long-term goals of full autonomy and robotic integration to get out of this considerable rut.