AirNet Technology raises $180 million in digital assets offering
Investing.com -- Tesla’s dominance in U.S. customer loyalty has sharply declined since CEO Elon Musk endorsed President Donald Trump last year, according to data shared exclusively with Reuters by S&P Global Mobility.
Tesla’s loyalty rate, defined as the percentage of Tesla-owning households that bought another Tesla (NASDAQ:TSLA), is said to have peaked at 73% in June 2024.
However, in an article published on Monday, Reuters reported that the figure “nosedived” to 49.9% by March 2025, just below the industry average, following Musk’s launch of a government efficiency department and the subsequent layoffs of thousands of workers.
S&P analyst Tom Libby told Reuters, “I’ve never seen this rapid of a decline in such a short period of time.”
The rate is said to have rebounded slightly to 57.4% in May but remains well below its previous highs.
According to Reuters, analysts believe Musk’s increasing involvement in politics has alienated environmentally conscious Tesla buyers, particularly those with Democratic leanings.
“If they have Democratic leanings, then perhaps they consider other brands,” Morningstar’s Seth Goldstein told Reuters..
Tesla’s aging vehicle lineup and rising competition have added pressure. Its Cybertruck, the only new model since 2020, has disappointed, Reuters reported, and U.S. Tesla sales fell 8% in the first five months of 2025. In Europe, sales plunged 33% over the first six months.
Tesla’s share of customer inflows has also reportedly deteriorated. From acquiring nearly five new customers for each one it lost, Tesla now gains fewer than two, Reuters wrote.
Despite this, some investors remain optimistic. Zacks Investment Management’s Brian Mulberry told Reuters that Tesla’s long-term value lies in robotaxis and licensing self-driving tech: “There’s a case to be made that Tesla doesn’t need to sell cars and trucks anymore.”