The number of United States residents interested in selling their Tesla has reached a record high, coinciding with a tough period for the company. According to Google Trends data, the search interest for “sell my used Tesla” has shot up in March, hitting 733% as of March 22.
The search interest in the term had started on a normal note at the beginning of March, seeing a score of 12 for the week between March 2 and 8. Things started to move from normal to worse by the end of this week, with the search term showing a score of 100 by the end of the week ending March 21. Over the past year, the term had turned up minimal results, with the present surge in March suggesting something is at play.
According to reports, the search term has the highest concentration in California, Virginia, and Florida, while Washington and Texas are also showing increased interest. The trend looks to be following global real-world market data. In addition, automotive resource platform Edmunds has revealed an increase in the number of Tesla owners opting for trade-ins, showing a growing shift in consumer sentiment towards electric vehicles (EV).
Tesla battle woes amid Musk’s DOGE criticism
In the data provided by Edmunds, Tesla models from 2017 or newer accounted for about 1.4% of all the trade-ins in the first two weeks of March, up from 1.2% in February. According to its estimates, March should record the highest share of Tesla trade-ins if the trend is sustained.
The rise in interest in selling Tesla vehicles is also coming at a time when the company is battling serious competition from Chinese EV makers amid its drop in sales.
Meanwhile, the need to sell used Tesla vehicles can also be attributed to the backlash that its CEO Elon Musk has received over his work at the Department of Government Efficiency (DOGE). The department was set up to cut government spending, remove excess waste, and reduce the national debt. While he had the streets in his first few weeks at the department, his subsequent actions have led to criticisms from most of the population.
Musk’s critics have done everything to catch his attention, including organizing peaceful demonstrations at Tesla dealerships and factories across North America and Europe. Others have gone further than being peaceful, vandalizing and blowing up Tesla vehicles, with the government labeling it domestic terrorism. While United States President Donald Trump has shown admiration for Musk’s work and supported his business, it remains to see what effect it has on the populace.
In reaction to the vandalism that has been happening to Tesla vehicles, Baird analyst Ben Kallo has mentioned that such acts could deter buyers from purchasing vehicles from the electric vehicle manufacturer. “When people’s cars are in jeopardy of being keyed or set on fire out there, even people who support Musk or are indifferent to Musk might think twice about buying a Tesla,” Kallo said.
While Musk has remained resilient in the face of adversity, the firm has been encountering a lot of setbacks over the last few months. The latest setback is the safety regulations associated with its vehicle, the Cybertruck. In this regard, the company has recalled 46,000 Cybertrucks due to a defect that could cause the body panels of the vehicles to detach. This makes it the eighth recall of the same vehicle in the past year.
Uncertainties persist as Wall Street discusses Tesla stock
While the Tesla brand continues to undergo uncertainties, the company’s stock has been under immense pressure, with attempts at a short-term recovery. According to reports, investors have been looking to offload the stock as it struggles to break above the $250 resistance level. The stock is presently trading at $248, up by 5.2% in the last 24 hours. The stock shows a slight 1.5% gain in the past week but remains down about 35% in its year to date.
Meanwhile, Wall Street analysts remain divided on the outlook of the stock. For instance, Tom Narayan of RBC Capital remained with his ‘outperform’ rating on the stock but reduced his price target from $440 to $320. He dismissed the drop in sales of the EV, noting that the fears are being exaggerated. In the same vein, Ryan Brinkman of JPMorgan remains with his bearish predictions, slashing his price target from $130 to $120. He cited the backlash against Musk and the increasing boycotts as major factors.
Redburn-Atlantic maintained its ‘sell’ rating, picking a $160 target. It cited weak growth and high inventories as Tesla prepares for its April delivery report. On the bullish side, Adam Jonas of Morgan Stanley said Tesla remains his auto pick, noting that he has an ‘overweight’ rating, and a $430 target. He sees Tesla as the future leader in AI and robotics, noting a potential upside of $800. Dan Ives of Wedbush also maintained his $550 target and an ‘outperform’ rating. He called the recent drop a “gut check moment” for investors.
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