Automakers Take Advantage of Tesla's Brand Issues to Launch Discounted Electric Vehicle Offers.
Tesla vehicle deliveries in the United States have reached a record high, as some owners feel disappointed with Elon Musk's policies, while others simply prefer to get rid of their car.
In the United States, Tesla vehicle trade-ins have reached record levels, driven by some owners' dissatisfaction with Elon Musk's political stances, as well as the desire to avoid vandalism from those who oppose his persona. Taking advantage of this situation, several automakers such as Polestar, Lucid Motors, Volvo, and Ford, which have lagged behind in electric vehicle (EV) sales, have introduced bonuses and incentives to attract buyers and challenge their loyalty to the Tesla brand.
Recently, Polestar launched a $5,000 discount, and its sales director, Jordan Hofmann, highlighted that the offer has been very well received, mentioning that the week had one of the best order days for the Polestar 3. Although most of these offers do not require interested parties to trade in their Teslas, analysts like Joseph Yoon from Edmunds emphasize that the trend indicates that EV owners are leaning towards other brands due to the devaluation of Tesla's image.
Musk's connection to Donald Trump's campaign and his influence in the political arena have led many to associate Tesla with the controversial millionaire. This has been accompanied by a global protest movement known as the Tesla Takedown and an increase in vandalism of Tesla vehicles, with more violent attacks that have provoked outrage from former President Trump, who has labeled such acts as "domestic terrorism."
Despite the situation, Yoon mentions that many owners are willing to part with their vehicles, even if it means a financial loss. Brands are taking advantage of this by offering conquest bonuses, encouraging those who were already considering a change to opt for their models. Sean Tucker, senior editor at Kelley Blue Book, explained that the current economic conditions for trade-ins are atypical due to Tesla's unique situation, as it is challenging to set a resale price in a landscape where the brand's public image is changing rapidly.
Smaller brands like Polestar and Lucid are willing to take losses on trade-ins to remove Tesla vehicles from the streets and boost their own sales. Initial indications suggest that Musk's political activities have negatively impacted new vehicle sales. While it remains unclear whether the incentives and discounts will significantly affect Tesla's market share, the consequences of the new car tariffs imposed by Trump could further complicate the landscape as buyers seek more affordable vehicles.
Polestar, for example, offers a $5,000 discount to Tesla drivers looking to lease the new Polestar 3. This, combined with an additional $15,000 in incentives for clean vehicles, could represent total savings of $20,000 for those who decide to switch to a 2025 model. For its part, Lucid Motors has implemented discounts of up to $4,000 for Tesla owners purchasing a 2025 Lucid Air, while Volvo has launched $1,000 incentives for current Tesla owners looking to acquire a fully electric Volvo.
In the case of Ford, the company also offered a $1,000 discount for Tesla owners choosing the new Mustang Mach-E or F-150 Lightning models, although it recently closed this offer.