⚡ Cybertruck’s 58% Value Drop – What’s Happening to Tesla? 📊

1. Rising Controversy and Public Backlash

Elon Musk's expanding role in U.S. politics has led to heightened scrutiny of Tesla, impacting public perception. Reports of vandalism and harassment against Tesla owners are increasing, creating unease among current and potential buyers. Protests against Musk and his policies have intensified, particularly in blue states, further complicating Tesla’s brand image.

2. Falling Resale Values and Slumping Demand

Despite price drops, used Teslas are struggling to find buyers. A March 2025 survey from Cars.com revealed that searches for used Teslas dropped by 16% in just a month. Meanwhile, demand for other electric vehicles increased by 28% over the past year.

The Cybertruck has been hit the hardest, losing 58% of its value in resale—a much steeper decline than the average used car. CarGurus reports that Tesla’s used car prices are falling more than twice as fast as the market average, making it difficult for owners to recoup their investment.

3. Political Polarisation and Shifting Buyer Loyalty

Tesla's brand loyalty is shifting along political lines. Data from S&P Global shows that repeat Tesla purchases in traditionally Democratic-leaning states fell from 72% in late 2023 to 65% in early 2024. Meanwhile, in Republican-leaning states, repeat Tesla purchases slightly increased from 47.6% to 48.2% in the same period.

Despite the backlash, Musk retains strong support from former President Donald Trump and his administration, with public endorsements and statements defending the brand. However, this political alignment has also alienated some previous Tesla supporters.

4. Growing Competition in the EV Market

Tesla no longer dominates the electric vehicle (EV) market the way it once did. The number of used EV models available has surged from 58 in early 2024 to 76 by early 2025.

At the same time, BYD overtook Tesla as largest EV marker in 2024.

With more choices, consumers are opting for alternatives that better suit their preferences and budgets.

Additionally, Tesla’s own price cuts for new models have contributed to depreciation in the used market. Dealers struggling to sell used Teslas must lower their prices to compete with discounted new models, further driving down resale values.

5. Internal Challenges and Market Uncertainty

Beyond public opinion and competition, Tesla faces internal struggles. Stock prices have erased all gains since Election Day, and global sales declined for the first time in company history last year. The Cybertruck recall of 46,000 units due to exterior panels detaching mid-drive has further damaged consumer confidence.

Wedbush analyst Dan Ives believes Tesla is at a "crisis point," urging Musk to refocus on the company. Analysts emphasise the need for a clear roadmap, including a commitment to producing lower-cost EVs and expanding Full Self-Driving technology, to regain momentum.

The Road Ahead

With declining resale values, political division, and intensifying competition, Tesla is at a crossroads. The coming months will be crucial as the company navigates these challenges and attempts to rebuild trust among both investors and consumers.

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