Trade-ins for Tesla vehicles in the U.S. have reached unprecedented levels as some owners express discontent with Elon Musk’s political views, while others seek to avoid potential vandalism from those opposed to him. This trend has not gone unnoticed by competing automakers.
Companies like Polestar, Lucid Motors, Volvo, and Ford, which have historically lagged behind Tesla in electric vehicle (EV) sales, are capitalizing on the backlash against the brand by offering conquest bonuses and incentives to lure buyers away from Tesla. Following Polestar’s introduction of a $5,000 discount, the automaker’s head of sales, Jordan Hofmann, reported a surge in order activity for the Polestar 3, calling the response to their Tesla Conquest Offer “incredible” on LinkedIn.
Notably, many of these offers do not require buyers to trade in their Teslas to qualify. However, Joseph Yoon, a consumer insights analyst at Edmunds, suggests that the trend is pushing EV owners toward making a switch due to Tesla’s recent brand issues. Musk’s political involvement, including his support for Donald Trump’s election and his controversial use of cryptocurrency, has caused many to associate Tesla with the polarizing billionaire. A global protest movement, dubbed Tesla Takedown, has emerged, coinciding with an uptick in vandalism against Tesla vehicles, including more aggressive acts like arson, which have prompted President Trump to label such incidents as “domestic terrorism.”
Whether a Tesla owner supports the protests or simply wishes to avoid having their car vandalized, Yoon indicates that many are willing to part with their vehicles even at a financial loss. “These conquest bonus programs are designed to appeal to those who would trade in their Teslas anyway. We want to make it more enticing for them to choose us over competitors,” Yoon explained.
On the automaker side, Sean Tucker, lead editor at Kelley Blue Book, noted that trade-in economics are currently atypical due to Tesla’s unique situation. Typically, when a dealer accepts a trade-in, they either sell it through their used car department or auction it to another dealership, often taking only a small loss. However, with the rapid change in Tesla’s public image, this process becomes more complicated. Smaller companies like Polestar and Lucid are reportedly willing to absorb losses on trade-ins to remove Teslas from the market and replace them with their own vehicles.
Early signs suggest Musk’s political actions have adversely impacted new car sales. However, it remains uncertain if the current trade-in incentives will significantly affect Tesla’s market share in the EV sector. The ramifications of Trump’s new automotive tariffs could also play a role as consumers look for more affordable options. Yoon pointed out that Tesla has an advantage as its most popular models are manufactured domestically with minimal foreign parts, while many new EVs rely heavily on international sourcing.
Polestar began offering a $5,000 discount for Tesla drivers wanting to lease the new Polestar 3 crossover back in February, combined with an additional $15,000 in Clean Vehicle Incentives, potentially totaling $20,000 off a model year 2025 EV for those making the switch. Lucid Motors has also begun quietly providing Tesla owners up to $4,000 in discounts on the 2025 Lucid Air sedan, with $2,000 for purchasing and an extra $2,000 if they trade in their Tesla, alongside a $1,000 discount for vehicles available at a sales studio during the order.
Both Polestar and Lucid require buyers to complete their transactions before April 30. Meanwhile, Volvo recently announced a nationwide incentive offering Tesla owners or lessees a $1,000 bonus toward the purchase or lease of a fully electric 2024 Volvo or any 2025 models, provided they take delivery before April’s end. Lastly, Ford has concluded its $1,000 discount for Tesla owners switching to a new Mustang Mach-E or F-150 Lightning, available only to those who took delivery before April 2.
