Tesla Loyalty Slumps After Musk Trump Endorsement, S&P Data Shows

Tesla’s once-industry-leading customer loyalty has fallen sharply since Chief Executive Officer Elon Musk publicly endorsed former President Donald Trump in July 2024, according to household vehicle-registration data from research firm S&P Global Mobility obtained by Reuters. Loyalty, measured as the share of Tesla-owning households that buy another Tesla when purchasing a new car, dropped from a peak of 73% in June 2024 to 49.9% in March 2025, slipping below the U.S. industry average before partially recovering to 57.4% in May. Analysts said the decline is unprecedented for a dominant automotive brand and links to backlash from the electric-vehicle maker’s traditionally progressive customer base after Musk intensified his political activity and took a leading role in Trump’s Department of Government Efficiency. The company is also contending with an ageing model line, a stalled Cybertruck rollout and heightened competition from General Motors, Hyundai, BMW and Chinese EV rivals. The loyalty slump coincides with weaker sales: Tesla deliveries fell 8% in the United States during the first five months of 2025 and 33% in Europe in the first half of the year, S&P data show. Even so, Tesla’s board this week awarded Musk 96 million shares valued at roughly $29 billion in an effort to secure his leadership while he challenges a court ruling that voided his previous pay package.