Tesla (NASDAQ:TSLA) is experiencing a notable drop in brand loyalty among U.S. customers, a shift that appears to align with CEO Elon Musk’s public support of former President Donald Trump, according to exclusive data shared with Reuters by S&P Global Mobility.
The loyalty rate—measuring the percentage of Tesla households that return to buy another vehicle from the brand—reached a peak of 73% in June 2024. But according to a Reuters report published Monday, that number “nosedived” to 49.9% by March 2025, dipping just under the average for the broader automotive industry. The sharp decline coincided with Musk’s creation of a government efficiency initiative and widespread job cuts.
“I’ve never seen this rapid of a decline in such a short period of time,” S&P analyst Tom Libby told Reuters.
Though loyalty figures recovered somewhat to 57.4% by May, they remain far off their prior levels.
Reuters noted that analysts attribute the shift in part to Musk’s heightened political activity, which may be distancing some Tesla loyalists—particularly those aligned with Democratic values.
“If they have Democratic leanings, then perhaps they consider other brands,” Morningstar analyst Seth Goldstein said in the article.
Additional headwinds are weighing on Tesla’s appeal. The automaker’s product line has remained relatively unchanged in recent years, with the Cybertruck—its only new release since 2020—failing to impress, according to Reuters. Tesla’s U.S. sales dropped 8% during the first five months of 2025, while its European business shrank by 33% in the first half of the year.
Tesla’s ability to attract new buyers has also weakened. Once drawing in nearly five new customers for every one it lost, Tesla is now bringing in fewer than two, the report stated.
Despite these trends, some investors continue to see promise in the company’s long-term prospects. “There’s a case to be made that Tesla doesn’t need to sell cars and trucks anymore,” said Brian Mulberry of Zacks Investment Management, who believes the firm’s value lies in autonomous technology and robotaxi potential.
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