Tesla's Brand Loyalty Has Fallen Dramatically

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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.