Tesla trade-ins in the U.S. have reached an all-time high, with many owners opting to switch to rival electric vehicle (EV) brands amid growing disillusionment with Elon Musk's politics and concerns over vandalism. The trend has prompted automakers like Polestar, Lucid Motors, Volvo, and Ford to offer conquest bonuses and incentives to lure Tesla owners away from the brand.

The backlash against Tesla has been fueled by Musk's use of his wealth to support Donald Trump's political campaign and his subsequent takeover of the federal government via DOGE, leading many to associate the brand with the controversial billionaire. A protest movement known as Tesla Takedown has spread globally, with some owners reporting vandalism and even arson attacks on their vehicles. As a result, many Tesla owners are willing to trade in their vehicles at a loss, according to Joseph Yoon, consumer insights analyst at Edmund.

Rival automakers are capitalizing on the trend by offering attractive incentives to Tesla owners. Polestar, for instance, is offering a $5,000 discount to Tesla owners who lease its new Polestar 3 crossover, while Lucid Motors is providing up to $4,000 in discounts to Tesla owners who purchase a 2025 Lucid Air sedan. Volvo has launched a nationwide incentive, offering customers who currently own or lease any Tesla a $1,000 bonus to buy or lease a 2024 fully electric Volvo or any 2025 or 2025.5 model. Ford, meanwhile, has closed its $1,000 discount to Tesla owners making the switch to a new Mustang Mach-E or F-150 Lightning.

According to Sean Tucker, lead editor at Kelley Blue Book, the economics of trade-ins are different at the moment due to Tesla's unique situation. "Ordinarily, when a dealer takes a trade-in, they either just put it into their own used side of the business and sell it, or in some cases, they'll sell it to an auction company that's going to then sell it to a different dealership. So they sometimes take a mild loss on them, but in a normal market, they can avoid it," Tucker said. "That's really different with Tesla right now because it's so hard to fix the resale price of a Tesla in an environment where their public image is just changing so quickly."

Yoon notes that smaller brands like Polestar and Lucid are willing to take a loss on a trade-in in order to take a Tesla off the road and put one of their vehicles on the road. "What these kinds of conquest bonus programs are capitalizing on is that these guys are going to [trade in their Teslas] anyway. What if we make it a little bit sweeter for them and make sure they come to us instead of a competitor?" Yoon said.

Early indicators suggest that Musk's political activities have negatively affected new car sales, but it's unclear if these trade-in incentives and discounts will make a dent in Tesla's share of the EV market. The consequences of Trump's new automotive tariffs could further complicate outcomes as buyers seek out lower-cost vehicles. "Tesla's big edge is that its most popular vehicles are manufactured here and very few imported parts," Yoon said. "A lot of these new EVs have a lot of foreign sourcing involved in their parts and manufacturing. So who knows how this will pan out?"

As the EV market continues to evolve, it remains to be seen how Tesla will respond to the growing competition and backlash against its brand. One thing is clear, however: the battle for electric vehicle supremacy has just gotten a lot more intense.