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Tesla’s brand loyalty has suffered some notable
setbacks.
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According to an exclusive Reuters report, Tesla
did more repeat business with U.S. auto buyers
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than any other major car brand.
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But then CEO Elon Musk backed Donald Trump’s
re-election efforts and customer loyalty
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suffered as a result.
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S&P Global Mobility reports that Tesla customer
loyalty reached an all-time high in June
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2024 when 73% of households that already owned
a Tesla were in the
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market for a new car.
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They purchased another Tesla.
S&P’s analysis based on vehicle registration
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data from every state found that things started
to change for Tesla in July 2024 when
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Musk became more politically involved.
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By March 2025, Tesla brand loyalty had free
fallen to 49.9%.
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Below the industry average.
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The timeline aligns with Musk’s efforts to
establish the Department of Government
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Efficiency.
Tesla’s loyalty rate has since improved to
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57.4% in May, above average, but still nearly
20 points lower than the high water mark.
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It’s on par with Toyota, but lags Ford and
Chevy.
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In May, Musk announced that he had left Doge
and said his time with the administration had
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come to an end.
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This was before things became a bit more
unamicable.
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In June 2025, as Musk became critical of the
administration’s One Big Beautiful Bill Act,
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S&P analyst Tom Libby told Reuters that Tesla’s
fall from grace was unprecedented,
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adding that he’s never seen this rapid of a
decline in such a short period of time.
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While it appears as though some fences have
been mended,
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Trump went out of his way to say that he wants
Elon to thrive.
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Musk has warned that the company’s rough
quarters could continue into 2026.
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The car company has since been ordered to pay
the victims of a deadly crash involving Tesla’s
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autopilot feature, more than $240 million in
damages, and despite the market volatility,
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the carmaker remains committed to keeping Musk
at the helm.
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It recently awarded the CEO another 96 million
shares worth some $29 billion, a
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move that some believe will keep Musk on as CEO
until at least 2030.
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I’m David Manti.
This is Manufacturing Now.