The number of Tesla trade-ins in the United States has reached an all-time high, with some owners opting to switch due to disillusionment with Elon Musk’s politics and others seeking to avoid potential vandalism.

Automakers, including Polestar, Lucid Motors, Volvo, and Ford, are seizing the opportunity to attract these dissatisfied customers by offering conquest bonuses and incentives that challenge brand loyalty.

Following the introduction of its $5,000 discount, Polestar’s head of sales, Jordan Hofmann, reported that the promotion had already yielded significant results, with some of the highest order days for the Polestar 3.

“We have seen a remarkable response to our Tesla Conquest Offer, with this week being one of the highest order days for Polestar 3,” Hofmann wrote on LinkedIn.

While most offers do not require buyers to trade in their Teslas to qualify, Joseph Yoon, a consumer insights analyst at Edmund, notes that the trend suggests EV owners are making the switch due to Tesla’s recent brand devaluation.

Elon Musk’s use of his wealth to support Donald Trump’s election campaign and the subsequent backlash have led many to associate Teslas with the controversial billionaire, prompting a global protest movement and increased vandalism.

As a result, some Tesla owners are willing to sell their vehicles at a loss to avoid potential damage or negative associations, and manufacturers are capitalizing on this trend by offering attractive incentives.

“These conquest bonus programs are taking advantage of the fact that these owners are already looking to trade in their vehicles. By making the offer sweeter, manufacturers can ensure that these customers come to them instead of a competitor,” Yoon explained.

Sean Tucker, lead editor at Kelley Blue Book, pointed out that the economics of trade-ins are unusual in Tesla’s case due to the brand’s rapidly changing public image, making it challenging to determine the resale price of a Tesla.

Tucker noted that smaller brands like Polestar and Lucid are willing to take a loss on a trade-in to remove a Tesla from the market and replace it with one of their own vehicles.

Yoon added that it is logical for these upstart EV makers to target their marketing efforts towards their main competitor, Tesla.

Early indicators suggest that Elon Musk’s political activities have negatively impacted new car sales, but it remains unclear whether these trade-in incentives and discounts will affect Tesla’s share of the EV market.

The introduction of Trump’s new automotive tariffs may further complicate the situation, as buyers seek more affordable options.

“Tesla’s significant advantage is that its most popular vehicles are manufactured in the US, with few imported parts. In contrast, many new EVs have a high percentage of foreign-sourced parts and manufacturing. The impact of these tariffs is uncertain,” Yoon said.

Tesla Trade-In Options

In February, Polestar introduced a special $5,000 discount for Tesla drivers interested in leasing the new Polestar 3 crossover, along with an additional $15,000 in Clean Vehicle Incentives for consumers who lease, resulting in a total potential discount of $20,000 for model year 2025 EVs.

Lucid Motors has also quietly begun offering Tesla owners up to $4,000 in discounts when purchasing a 2025 Lucid Air sedan, with $2,000 for buying the car and an additional $2,000 for trading in their current Tesla. Furthermore, Lucid is offering an extra $1,000 off for vehicles available at a sales studio location at the time of order.

Both Polestar and Lucid require buyers to take delivery before April 30 to be eligible for these offers.

In mid-March, Volvo launched a nationwide incentive, offering a $1,000 bonus to customers who currently own or lease any Tesla and purchase or lease a 2024 fully electric Volvo or any 2025 or 2025.5 model, as long as they take delivery before the end of April. This offer does not require the purchase of an EV, and the only 2025.5 model available from Volvo is the XC90 plug-in hybrid SUV.

Ford recently closed its $1,000 discount to Tesla owners switching to a new Mustang Mach-E or F-150 Lightning, which was available to buyers who took delivery before April 2.

A Ford spokesperson stated that the automaker has no current or future incentives to share.