As the backlash against Elon Musk intensifies, a record number of Tesla, Inc. (NASDAQ:TSLA) owners are rushing to offload their vehicles, flooding the used market and driving prices down.
What Happened: The used car market saw a record surge in Tesla listings in March, with over 13,000 used Teslas posted for sale on Autotrader, according to Cox Automotive, reported Business Insider.
That marks a 67% year-over-year increase and comes amid nationwide protests dubbed the “Tesla Takedown,” which targeted Musk’s growing political affiliations — including his role as head of DOGE and close ties to the Donald Trump administration.
A Cox Automotive spokesperson told the publication that the spike in listings is being driven by two main factors: Tesla’s massive growth between 2021 and 2023, which naturally feeds into the used market now, and Musk’s increasingly polarizing public image.
“We cannot ignore the influence of Elon Musk’s new high-profile job as DOGE boss and presidential confidant. That is certainly influencing some owners and buyers,” the spokesperson said.
Stephanie Valdez Streaty, director of industry insights at Cox Automotive, said that Musk’s political and public persona is creating “significant challenges” for Tesla, compounding issues like rising competition and an aging vehicle lineup.
Why It Matters: The surge in used Tesla inventory is weighing on prices. According to CarGurus, the average used Tesla now sells for about $10,000 less than other electric vehicles, the report noted.
Tesla is trying to regain momentum with two major launches this year: a more affordable EV model expected in the first half and a robotaxi service slated to debut in Austin, Texas, in June.
According to a Cox Automotive report, the U.S. EV market saw a 10.6% year-over-year growth in the first quarter of 2025, although Tesla experienced a decline.
Despite this, Tesla remains a dominant force in the domestic EV market. Despite an 8.6% drop in sales year over year, Tesla still leads the segment with a commanding 43.5% market share.
Tesla’s expansion into new markets, such as Saudi Arabia, highlights its global ambitions despite challenges in Europe. However, a new consumer survey in March revealed that Musk is making Americans less inclined to purchase a new Tesla.
According to Benzinga’s Proprietary Edge Rankings, Tesla holds a momentum rating of 90.20% and a growth rating of 67.67%. For more stock insights and growth opportunities, subscribe to Benzinga Edge.
The consensus price target for Tesla is $299.99, based on evaluations from 29 analysts. Benchmark set the highest target at $475 on Feb. 12, while GLJ Research gave the lowest at $24.86 on the same day. The three latest price targets from UBS, Mizuho, and Benchmark average around $305, indicating a potential upside of 20.58%, according to Benzinga Pro data.
Check out more of Benzinga’s Future Of Mobility coverage by following this link.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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