Tesla Loyalty Plummets 35% After Musk’s Trump Endorsement, S&P Data Reveals

Remember Gerald Ratner? The British tycoon who sank his jewelry empire by calling his products “total crap”? Elon Musk might have just had his Ratner moment. New data reveals Tesla’s once-unshakeable customer loyalty took a devastating nosedive following Musk’s public endorsement of Donald Trump.

Customer Exodus Triggered by Political Shift

According to exclusive figures from S&P Global Mobility, reported by Reuters on August 4, 2025, Tesla’s US customer loyalty rate stood at an enviable 73% in June 2024. Then came July. Shortly after endorsing former President Trump in the wake of an assassination attempt, Musk’s political stance triggered a seismic shift in brand perception. By March 2025, Tesla’s loyalty rate had cratered to a dismal 49.9% – sinking below the national average for the first time and representing a staggering 35% decline. Analysts cited by Reuters directly link this plunge to Musk’s vocal support for Trump, a move that alienated a significant portion of Tesla’s traditionally progressive customer base. Sales figures underscored the damage: US deliveries fell 10.8% year-over-year in the first half of 2025, despite key model updates like the refreshed Model 3 and Model Y.

Brand Damage Deepened by DOGE Controversy

The loyalty crisis worsened as Musk’s actions beyond politics further tarnished Tesla’s image. His brief, tumultuous tenure leading the newly created Digital Optimization & Growth Enterprise (DOGE) agency proved disastrous. A widely reported federal job-slashing initiative spearheaded by Musk, allegedly aimed at cost-saving measures tied to cryptocurrency ventures, generated intense public backlash. This period coincided with Tesla loyalty hitting its absolute low point in March. “Loyalty is built on brand values aligning with customer identity,” noted an automotive branding expert in the Reuters analysis. “When the CEO’s actions and affiliations clash violently with those perceived values, especially on highly charged issues, loyalty evaporates.”

A Fragile Recovery Amid Lingering Distrust

Since leaving DOGE and reportedly cooling relations with Trump, Tesla has seen a slight rebound. The May 2025 loyalty rate inched up to just over 57%, placing it roughly level with Toyota but still trailing domestic rivals Chevrolet and Ford. However, the recovery remains fragile and far from the dominance Tesla previously enjoyed. The question looming over the brand is whether Musk himself has become an insurmountable liability. Gerald Ratner’s company survived only by rebranding and his eventual ousting. Can Tesla rebuild trust without distancing itself from its polarizing leader? The path to regaining its lost customer base appears steep and uncertain.

The stark reality is clear: Elon Musk’s political gambit and controversial government role inflicted profound damage on Tesla’s brand loyalty, erasing years of consumer goodwill almost overnight. Recovering that trust will require more than just updated models; it demands a fundamental reassessment of leadership’s impact on brand identity. Watch Tesla’s Q3 sales figures closely for signs of lasting recovery.

Must Know

1. How much did Tesla’s customer loyalty drop after Musk endorsed Trump?
   Tesla’s US customer loyalty plummeted dramatically, falling from 73% in June 2024 to just 49.9% by March 2025 – a drop of almost 35%. This data, reported by Reuters on August 4, 2025, came from S&P Global Mobility and marked the first time Tesla loyalty fell below the national average.
2. What caused the huge drop in Tesla loyalty?
   Analysts directly attribute the loyalty crash to Elon Musk’s public endorsement of Donald Trump for president in July 2024. This political stance alienated many Tesla customers whose values did not align with Trump. The damage was later compounded by Musk’s controversial actions while leading the DOGE agency, including federal job cuts linked to crypto initiatives.
3. Did the loyalty drop affect Tesla sales?
   Yes. Alongside the loyalty collapse, Tesla’s US sales declined by 10.8% year-over-year during the first half of 2025 (January to June). This sales slump occurred despite the launch of updated Model 3 and Model Y vehicles, indicating the brand damage impacted both existing owners and potential new buyers.
4. Has Tesla’s customer loyalty recovered at all?
   There has been a modest recovery. By May 2025, Tesla’s loyalty rate had improved to around 57%, putting it roughly on par with Toyota. However, this is still significantly lower than its peak of 73% and lags behind competitors like Chevrolet and Ford. The recovery is tentative and the long-term impact remains uncertain.