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Tesla Loyalty Dips to Industry Levels as Sales Tumble

Elon Musk’s endorsement of President Trump drove Tesla’s repeat-purchase rate down before it recovered to just 57.4% in May.

U.S. President Donald Trump talks to the media next to Tesla CEO Elon Musk, at the White House in Washington, D.C., U.S., March 11, 2025. REUTERS/Kevin Lamarque/File Photo
Tesla CEO Elon Musk reacts while wearing a cap with the words "Gulf of America" as he attends a cabinet meeting held by U.S. President Donald Trump at the White House in Washington, D.C., U.S., April 30, 2025. REUTERS/Evelyn Hockstein/File Photo
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BEVERLY HILLS, CALIFORNIA - MAY 6: The Co-Founder Technoking of Tesla, SpaceX and  X Holdings Corp., Elon Musk speaks at the Milken Institute's Global Conference at the Beverly Hilton Hotel,on May 6, 2024 in Beverly Hills, California. The 27th annual global conference explores various topics, from the rise of generative AI to electric vehicle trends and features participants, soccer star David Beckham and actor Ashton Kutcher. (Photo by Apu Gomes/Getty Images)

Overview

  • Tesla’s U.S. loyalty rate rose from a March low of 49.9% to 57.4% in May, leaving it behind Chevrolet and Ford and level with Toyota.
  • Deliveries fell 8% in the United States during the first five months of 2025 and plunged 33% in Europe over the first half of the year.
  • Since February, Tesla has gained fewer than two new households for each one it lost, marking its weakest net customer migration on record.
  • An aging model lineup and the underperforming Cybertruck have opened the door for legacy automakers and Chinese EV makers to attract former Tesla buyers.
  • Analysts say Musk’s political activism alienated eco-conscious customers and urge Tesla to rebuild its brand even as it tests robotaxi services.