by The Impact of Musk’s Political Stance on Tesla Customer Loyalty
Data from S&P Global Mobility, published by Reuters, shows that Elon Musk’s support for Donald Trump during the 2024 presidential campaign led to a significant drop in Tesla customer loyalty. The brand, which previously had the highest customer retention rates in the industry, lost almost 35% of its repeat buyers.
In June 2024, 73% of American Tesla owners who changed cars chose a new model of this brand. However, already in July, after Musk’s public support for Trump, this figure dropped sharply. By March 2025, loyalty had fallen to 49.9%, which is below the national average.
“Former owner of the Gerald Ratner jewelry chain knows how one thoughtless statement can ruin a business. In 1991, he called his own jewelry ‘total crap,’ which almost led to the collapse of the company.”
Consequences for Sales and Possible Recovery
The drop in loyalty was accompanied by a decline in sales, even despite the updates to the Model 3 and Model Y. Although by May 2025 the situation had improved slightly (57% of customers chose Tesla again), the brand still lags behind competitors such as Chevy and Ford.
The Gerald Ratner story shows that brands can recover from a crisis, but it takes time and changes. Whether Tesla can repeat this path remains a question. Musk’s departure from DOGE and the break with Trump give some hope, but a full restoration of trust could take years.
