Tesla’s once industry-leading U.S. customer loyalty has plunged sharply since CEO Elon Musk endorsed Donald Trump for president in July 2024, according to exclusive S&P Global Mobility data shared with Reuters. Loyalty peaked at 73% in June 2024 but dropped to a low of 49.9% by March 2025, falling in line with the industry average before rebounding slightly to 57.4% in May. Analysts suggest Musk’s political activism alienated parts of Tesla’s eco-conscious customer base, while the company’s aging lineup and rising competition from brands like General Motors, Hyundai, and BMW further eroded its appeal.
The data shows Tesla’s net gain of new customers also collapsed. For four years before mid-2024, Tesla acquired nearly five new households for every one it lost—a figure unmatched by any other major brand. Since February 2025, however, Tesla has been gaining fewer than two households per one lost, its lowest level ever. Brands such as Rivian, Polestar, Porsche, and Cadillac are now attracting more Tesla customers than they lose to the EV pioneer. Analysts warn the decline coincides with heightened competition from both legacy automakers and Chinese EV makers, amplifying concerns over Tesla’s market share and brand damage.
Tesla, still the U.S. EV sales leader, has also faced an 8% sales decline domestically in the first five months of 2025 and a 33% drop in Europe, where backlash to Musk’s political involvement has been intense. CFO Vaibhav Taneja has cited vandalism and hostility toward the brand, as well as production slowdowns during factory retooling, while Musk has downplayed concerns about demand. Some investors remain optimistic, betting on future profits from Tesla’s push into robotaxis and self-driving technology licensing, despite its current sales and loyalty challenges.
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