Tesla’s US customer loyalty rate dropped sharply after CEO Elon Musk publicly endorsed Donald Trump in July 2024, according to new S&P Global Mobility.

S&P Global Mobility analyzes vehicle registrations nationwide to track brand loyalty and customer migration.

Tesla’s loyalty peaked at 73% in June 2024, but fell to 49.9% by March 2025, just below the industry average, before recovering to 57.4% in May.

Tesla remains the top electric vehicle seller in the U.S. but faces increased competition from automakers like Ford, General Motors, and Hyundai.

Analysts attribute the loyalty decline to Musk’s political involvement and the company’s aging lineup, with only one new model, the Cybertruck, since 2020.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Tesla’s fall represents the loss of an unprecedented industry dominance

Tesla’s recent loyalty decline is particularly striking because the company previously held an almost unassailable position in customer retention across the entire automotive industry.

Just two years ago, Tesla commanded 83% customer retention rates—the highest in the automotive industry—with only 39% of first-time owners leaving the brand compared to the industry average of 58%1.

The company consistently ranked first in brand loyalty studies, with Experian data showing 70.7% of Tesla owners purchased another Tesla after disposing of their vehicle2.

Tesla also boasted a remarkable Net Promoter Score of 97, with 99% of Model 3 owners saying they would recommend the vehicle and 98% indicating they would repurchase3.

This historical dominance makes the current 49.9% loyalty rate particularly significant. It represents not just a decline, but a substantial shift from what was considered the gold standard for automotive brand loyalty.

2️⃣ The competitive reversal shows Tesla’s former strength becoming a weakness

Tesla has gone from being the industry’s biggest customer magnet to losing ground to the very competitors it once dominated.

As recently as 2023, Tesla was actively stealing customers from premium brands, with 7.5% of BMW households and 6.4% of Honda households migrating to Tesla—both increases from the previous year4.

Recent Tesla developments