Tesla’s brand loyalty takes a hit after Musk’s Trump endorsement: Report
Customer loyalty plunged from 73% to under 50% after Elon Musk backed Trump, says S&P Global Mobility.
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Tesla’s once-unmatched customer loyalty has sharply declined in the U.S. since CEO Elon Musk publicly endorsed Donald Trump last year, according to exclusive data from S&P Global Mobility, reported by Reuters.
In June 2024, 73% of Tesla-owning households buying a new vehicle chose another Tesla. But after Musk backed Trump following an assassination attempt on the Republican nominee in July, that figure plummeted.
By March 2025, loyalty dropped to just under 50%, below the industry average, before inching back up to 57.4% by May.
S&P analyst Tom Libby called the decline “unprecedented.” Tesla’s fall from dominance has been attributed not just to Musk’s political stances but also to a stagnant product lineup, growing EV competition, and negative consumer sentiment.
Tesla's U.S. sales have fallen 8% in 2025, while European sales plunged 33% amid backlash to Musk’s political activism. The company now gains fewer than two new households for every one it loses, its lowest rate ever. Rivals like Rivian, Polestar, and Porsche are increasingly attracting former Tesla customer.
Once seen as titans of disruption — one in business, the other in politics — Musk and Trump have shared an unpredictable relationship defined by strategic convenience, public praise, sharp insults, and now, an all-out feud. What began with cautious engagement in 2016 has unravelled into a political spectacle in 2025, with impeachment threats, policy clashes, and personal jabs taking centre stage. While the 2024 U.S. election cycle saw a surprising realignment, by April 2025, Musk had begun distancing himself from DOGE, citing the need to refocus on his companies.
In June, tensions exploded over the "One Big Beautiful Bill," a major spending and tax proposal. Musk publicly condemned the bill for gutting electric vehicle subsidies and ballooning the deficit, calling it a “disgusting abomination.” Trump retaliated by threatening Musk’s federal contracts and calling him “a man who has lost his mind.”
