If you were waiting for a sign, this is it. It’s time to sell.
When I tell strangers my job is to review cars for a living, the most common response is “What do you think of Tesla?” For well over a decade, Tesla has been the strange and novel outsider that caught the attention of the non-automotive world. Where “legacy” automakers were staid and dull, Tesla was tech-first and exciting. Its EVs set the bar during the 2010s for all other automakers, both in function and in screen-first form.
As CEO and majority shareholder Elon Musk and his DOGE project have moved towards becoming a de facto fourth branch of the right-wing Trump administration; however, enthusiasm has cooled dramatically. Protests at Tesla dealerships have cropped up across America. Secondary market values have cratered. Calls to trade in Teslas have mounted.
It is time for me to definitively answer all those strangers’ questions about Tesla: I don’t think they’re a good buy, and I think there’s a strong case to sell one you own right now.
The Case Against A New Tesla
Tesla’s first four mass-production models—the full-size luxury sedan Model S, the large gullwing-doored Model X SUV, the affordable midsize sedan Model 3 and the Model Y crossover that followed it—were unrivaled in the EV market when they first launched.
But in the past half a decade, Tesla’s competitive advantage has narrowed from a seemingly uncrossable chasm to a sliver at best. When the Tesla Model 3 hit the market in 2017, the best-selling EV in history was the Nissan Leaf . That relatively goofy-looking, economy-minded hatchback had an EPA-rated 107 miles of range.
Then the Model arrived With an unprecedented maximum range of 310 miles, it stood out initially. For several years now, the Model Y has been the benchmark for crossovers in the worldwide electric vehicle market.
However, this lead has narrowed significantly today, falling within the margin of error. To illustrate with an actual scenario, consider the farthest-reaching version of the upcoming 2025 Tesla Model Y boasts an EPA-estimated range of 339 miles; 2025 Kia EV6 in its long-distance guise should target 319 miles.) When you account for the fact that Tesla had, for years, suppressed complaints about its overly optimistic in-car range figures, and used unusual testing strategies to raise its EPA estimates , that 20 miles of extra range is a lot less consequential. In real-world tests by Edmunds , the vast majority of Teslas failed to reach their EPA estimated range, even though the vast majority of EVs from other brands that Edmunds tested exceeded their EPA estimates.
Many other auto manufacturers are also future-proofing their EVs for longevity—while Tesla continues on with relatively unchanged architecture. All of Tesla’s EVs are built on 400-volt underpinnings, while other manufacturers—including Hyundai and Kia, and now Volvo, Audi and Porsche, among others—have moved to an 800-volt system . This means they can handle more electricity at once and charge more quickly. Implementing a lower-voltage system saves the company money up front, but it means that its components reach higher temperatures during fast charging or high-speed antics. This leads to further battery and range degradation over the long term.
Tesla also has a less-than-stellar safety history. The National Highway Traffic Safety Administration has opened several probes into Tesla primarily because of its "Full Self-Driving" feature. The carmaker’s associated "Autopilot" technology has reportedly contributed to accidents resulting in 54 injuries and 14 fatalities, as stated. one investigation .
The latest offering from the company, the Cybertruck, has encountered several rounds of recalls at figures significantly above the industry norm. (The latest recall was related to a concern that the Body panels would come loose while driving. .) Additionally, the lack of easily accessible physical door linkages on most Teslas has been implicated in a variety of high-profile fatalities . Concerningly, despite stellar crash-test ratings, Teslas are involved in fatal accidents more often than any other brand, at a rate nearly twice the average .
Financially, the decision between many other EVs and Tesla remains a wash. To continue our example, the new U.S.-made Kia EV6 and the Tesla Model Y should be eligible for the full $7,500 federal EV tax credit. While the future of that incentive is very unclear, at the time of this writing, the equivalent long-range Kia is estimated to be slightly less expensive , by about $2,000. There are similarly close comparisons for every vehicle Tesla currently makes.
Given the presence of U.S.-based electric vehicle manufacturers like Lucid and Rivian, along with entries from major brands such as Chevrolet, Cadillac, Ford, Jeep, RAM, and Dodge into theEV market, consumers now have numerous local options for going electric without needing to opt for gasoline vehicles. From my perspective as an auto evaluator, it's important to highlight that I've discovered Most electric vehicles on the market tend to be superior automobiles. They provide a better ride with more intuitive features and greater specialization across all levels of the market. In fact, I often recommend the EV6 to newcomers shopping for an affordably priced crossover.
Using the Tesla Supercharger network more receptive to electric vehicles from brands other than Tesla Indeed, it has never been simpler to bypass the Tesla dealership and explore other options.
What if there’s one in your garage at this very moment? Should you consider selling it?
The Pragmatic Case To Sell Your Tesla
The main reason to sell now is that Teslas are shedding value at obscene rates and are likely to skyrocket in operating costs. EVs have long suffered from poor resale value, but Teslas have outpaced that trend for the past year and a half. Until the inauguration, this was largely thanks to the company’s use of aggressive discounting to move new inventory, combined with large rental fleets, like Hertz dumping tens of thousands of cars on the market at once.
The situation has only worsened since President Donald Trump’s re-election win. Musk’s $290 million in Republican campaign support and his advisory role to the president have made him a lightning rod for criticism. This has been catastrophic for Tesla.
Tesla, for years, did not advertise its cars. It instead relied on word-of-mouth, media coverage, and Musk’s massive personal platform, making him a figurehead of Tesla in a way that, say, Mary Barra of General Motors is not. Combined with the fact that Musk is Tesla’s single-largest shareholder and derives roughly one-third of his $303 billion in net worth from Tesla stock, Tesla is now indelibly associated with the billionaire. (The massive crop of “I Bought This Before He Went Crazy” stickers is evidence of that.)
Even though Musk holds right-wing beliefs, Tesla and electric vehicle owners Nonetheless skew more Democratic And they are more progressive than drivers of any other brand, which makes them more susceptible to abandoning their vehicles due to political pressure.
Edmunds found that buyers searching for new cars are also, increasingly, walking away from Teslas—just 1.8% of surveyed buyers are shopping for one compared with 3.3% as recently as November. It’s unlikely that right-wing buyers will show up in droves to replace cratering demand, even as Musk gains favorability among Republicans, as Republicans are vastly less likely to buy an EV for their next vehicle.
Concerningly for current owners, as values collapse further, new Teslas will become comparatively worse deals. Due to Tesla’s direct-sales model, it has a much stronger incentive to move inventory than most other automakers, which makes further fire sale incentives likely—and risks creating a negative feedback loop.
Even worse for current owners, it may not even be a wise financial choice to sit on a rapidly depreciating Tesla. Tesla insurance rates have long been well above average , with premiums coming in somewhere between an average Aston Martin and an average Porsche policy This can be attributed to limited spare part availability, a scarcity of skilled technicians, and complex repairs .
As symbols of the Trump administration, Musk and Tesla have attracted significant attention, turning Teslas into targets for vandalism. Insurers caution that this trend might lead to increased insurance premiums. Meanwhile, the U.S. Attorney General, Pam Bondi, has warned that vandals targeting Teslas could face consequences. domestic terrorism charges It is still uncertain whether she possesses the necessary legal grounds to take such action and if it would effectively curb vandalism. Particularly, this approach may not work well if Musk becomes involved with sensitive political issues that could be referred to as touching "the third rail of American politics." threatens to cut Social Security as he has done before .
If you intend to push your Tesla to its limits, even under such circumstances, keeping it running smoothly could prove trickier compared to maintaining most other vehicles. Unlike many car manufacturers, Tesla produces a significant portion of its components in-house, which restricts the availability of third-party spare parts. This high level of vertical integration sets Tesla apart from conventional automobile companies.
The company's direct-sales approach implies that when cost-cutting measures become necessary, there are no third-party dealerships from competing brands available to share the financial load. The business must generate sufficient car sales to sustain its own facilities, including outlets and service centers which it fully owns; otherwise, these locations will have to be shut down. A consistent supply of components and maintenance services relies heavily on the ongoing success of the company itself. Despite potential improvements in U.S. market sales, Tesla presently confronts significant challenges domestically as well. China and Europe .
If this has persuaded you to sell, several competitors are actively encouraging Tesla owners to switch to their brands at present. Polestar is one such competitor. offering $20,000 in discounts For Tesla trade-ins with Polestar 3 lease deals. Lucid is providing a $4,000 incentive to Tesla vehicle owners.
Nevertheless, I must acknowledge this: if you decide to trade in your Tesla at present, you will probably face significant depreciation—given how quickly these vehicles lose value. The situation seems poised to deteriorate further with time passing. Thus, it might be wiser to finalize the transaction sooner rather than later.
If this hasn’t convinced you yet, however, there’s still my most important argument.
The Ethical Argument for Switching to a Tesla
It seems Musk is an aspiring oligarch He acquired one of the biggest social media platforms on the planet and transformed it into a right-wing propaganda outlet He subsequently invested $290 million in backing Republican candidates during the 2024 elections. This move probably doesn’t align with the typical political leanings of most Tesla owners, and the evident corruption occurring at the same time ought to be troubling for everyone involved.
Since then, he has been awarded with unprecedented direct support For Tesla from the federal government, including an outrageously unscrupulous car sales pitch conducted by Trump at the White House lawn and an FBI team specifically assigned to shielding Tesla's vehicles from vandalism .
He has turned his influence and riches into power unprecedented amount of access , through his specialized advisory position to the president and "DOGE," access to sensitive government information and funds has been granted. The unpredictable nature of DOGE is currently having an active adverse effect. public employees' experiences more taxing . DOGE overstepped any constitutional justification to shut down the humanitarian USAID organization , potentially affecting tens of thousands of individuals and severely undermining America’s reputation internationally. The proposed reductions in IRS funding directed towards DOGE are anticipated to result in amounts to a loss of $500 billion in revenue for the federal government , rather than cost savings, this year alone. Musk has frequently commented on the necessity of reducing welfare benefits, which he refers to as " the big one. "
Musk has consistently promoted variations of the Great Replacement Theory , a discredited extremist He presents an interpretation that recasts white supremacist ideas, framing immigration as part of a conspiracy aimed at dismantling Western society. He contends that birth control and abortion might lead to "the downfall of civilization." Additionally, he has shared posts asserting that " Hitler didn’t murder millions ". During Trump's inaugural ceremony, he performed a gesture it appeared to resemble a Nazi salute, and upon being questioned about it, joked about Nazis .
Many of his opinions are detested by most Americans, and He personally is extremely disliked. Although some adjustments might be possible in the 2026 and 2028 elections, Musk and DOGE have progressed swiftly, making it probable that the federal government has already taken action. permanently damaged . Stopping him quickly is the only way to limit the carnage. As an unelected and unaccountable “advisor”, the American public has little recourse.
With the exception of Tesla, Musk's impact predominantly occurs. stemmed from his wealth About a third of Elon Musk's $300 billion fortune stems directly from his holdings in Tesla stock. As a company that sells goods directly to consumers and manages both distribution and service networks itself, Tesla faces significant risk should a broad-based boycott of its vehicles occur across both new and pre-owned markets. In fact, during the fourth quarter of 2024, the only part of Tesla's operations showing increased revenues was their servicing division. This implies that abstaining from purchasing new Teslas, discouraging others from doing so as well, and opting out of trade-ins could severely affect the company’s immediate financial outlook and consequently diminish Musk's wealth.
It is conceivable that continuous pressure could severely harm the company and diminish Musk’s wealth and influence. Given the presence of other eco-friendly vehicles now available on the market, this scenario becomes even more likely. expanding industry for electric vehicle reuse and recycling For Teslas that ultimately become completely worthless, there are scarcely any drawbacks to exchanging your Tesla at this moment. You can cease funding the planet’s wealthiest individual and his mission to reshape governance according to his vision. In doing so, you may even halt his ambitions altogether.
If you've been looking for a signal, here it is. Now's the time to sell.
Victoria Scott is an author, photographer, and automotive journalist who has contributed articles to various publications. Motor1 , Road & Track , Insider , The Drive and other publications She resides in Seattle with her spouse and their cat, Burt. She can often be found on Bluesky , Patreon , and her personal website .
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