Tesla's Customer Retention Plummeted Following This Single Decision by Elon Musk | Carscoops

      Customer loyalty for Tesla plummeted from 73 percent to 50 percent following Elon Musk's endorsement of President Donald Trump, according to data.

      Retention fell by nearly 35 percent based on new figures from S&P Global as reported by Reuters.

      Loyalty reached its lowest point during Musk’s attempt to cut jobs in order to save money at the newly established DOGE agency.

      It can take just one moment, a careless statement, or a poor choice to severely damage a business. Gerald Ratner, a former British jeweler, experienced this firsthand.

      In a 1991 talk, he referred to his company's affordable jewelry as “total crap,” a comment that may have amused the audience but almost destroyed his family's successful business and cost him his position.

      Musk's equivalent moment, as indicated by recent S&P Global Mobility data shared by Reuters, was his support for Trump's presidential campaign in the summer of 2024, which led to a dramatic decline in customer retention for a brand once known for having the highest loyalty in the industry.

      Loyalty Declines After Political Endorsement

      Data shows Tesla’s customer loyalty reached a high in June 2024, with 73 percent of US customers opting for another Tesla when looking to replace their vehicle. However, in July, following Musk’s endorsement of Trump after an assassination attempt on him, loyalty started to decrease rapidly.

      By March of this year, with Musk further damaging Tesla's brand image through his job cuts at DOGE, loyalty had dropped to 49.9 percent, the lowest level ever recorded and below the national average, according to Reuters.

      Sales figures from that time indicate that the decline affected not just current Tesla owners but also potential first-time buyers. Tesla’s US sales fell by 10.8 percent from January to June, despite the facelifted Model 3 and a refreshed Model Y being released during that timeframe.

      A Minor Recovery, Yet Still Lagging

      Musk has since distanced himself from DOGE and had a fallout with Trump. The report suggests that loyalty has slightly increased, but it remains far from the levels seen last year. In May, just over 57 percent of Tesla customers purchased another vehicle from the brand, a rate comparable to Toyota, but still behind Chevy and Ford.

      Gerald Ratner was ousted from his namesake company in 1992, and the following year, Ratner Group rebranded to Signet Group. It is now a leading jewelry firm, owning renowned brands like Kay Jewelers, Zales, and Jared in the US, and H.Samuel and Ernest Jones in the UK.

      Will it require a similar turnaround for car buyers deterred by Musk's actions and statements to see an impressive revival? Clearly, this remains uncertain unless someone can predict the future.