Just when we thought Tesla was on its way to becoming unbeatable comes this piece of news from Edmunds saying Tesla owners are switching back to gas.
But there’s a catch: this statistic isn’t accurate.
Many must already be doubting the stats as the number of EVs automakers have sold in recent years is insane. The survey is based on limited facts and we will give you the full rundown of the whole story. Here’s the full picture.
Table of Contents
The Real Story Behind Tesla Owners Going ICE
Recent data from Edmunds had EV haters celebrating, claiming over 50% of Tesla buyers were trading their electric vehicles for gas cars.
Edmunds indeed is a reputable source for new car data and car testing but has a limitation in its sales data. It excludes vehicles sold through direct company stores and focuses solely on traditional dealership trade-ins.
This creates a skewed perspective, as Tesla doesn’t operate through traditional dealerships.
Instead, Tesla sells its cars through directly owned company stores that are not included in Edmunds’ dataset. This oversight excludes a large segment of Tesla owners.
The ones who may be trading in their cars for new Teslas or other EVs sold outside of dealer networks. Patrick George, Editor-in-Chief of Insideevs.com too shared in a recent story, why Edmunds’ data can’t fully capture Tesla owner behavior.
A YouTube video from EV Buyers Guide included S&P Global data, providing a broader view of the market. This data includes new vehicle registrations and information about when a car is no longer registered to an address.
The video crushes all claims made by the survey from Edmunds and paints a better picture of how Tesla owners behave. Even including Tesla owners who buy another Tesla, those whose cars are totaled and replaced without trade-ins, and private sales or purchases.
Tesla Loyalty Is Huge
The S&P Global data is very different from Edmunds’ claim that 51% of Tesla owners switch to gas cars. Edmunds’ data doesn’t cover Tesla’s direct sales and other EV brands sold outside traditional dealerships. Most Tesla owners are happy with their EVs and stay within the electric vehicle market. Here’s how:
|
Old Tesla Owners Switching To Vehicle |
Percentage |
|
Another Tesla |
70% |
|
Other EVs |
10% |
|
ICE Cars |
13% |
|
Hybrids |
4% |
|
Plug-in Hybrids |
2% |
|
Diesel |
1% |
The data from S&P Global shows that most Tesla owners actually are sticking with a Tesla. About 70% of them buy another Tesla when they are in need of a new car. Another 10% switch to other electric automakers, with Rivian being the most popular.
A staggering 9.8% of those customers are choosing Rivian over other EV makers. Only 13% of Tesla owners trade their EVs for gas cars in the real world. The rest choose hybrids (4%), plug-in hybrids (2%), or diesels (1%).
This table clearly shows that most Tesla owners prefer to stay with electric vehicles, especially Tesla, rather than switching back to gas-powered cars.
Tesla’s Continues To Dominate EV Sector
S&P Global Mobility data revealed that Tesla had the highest owner loyalty rate in 2023, repeating its performance from 2022. This loyalty is understandable given Tesla’s popular cars.
The Austin, Texas-made Model Y, won the world’s best-selling car title last year, proving Tesla’s mettle.
Teslas are easy to drive, quick, smart, efficient, and can be fast-charged at the company’s extensive Supercharger network. These features, combined with the convenience of the Tesla app and the brand’s American-made status, make Tesla vehicles highly attractive to buyers.
A Reddit user Resident_Rise5915 says that people who buy EVs now are already committed to them, so it makes sense they’re sticking with them and we think it is such a wise thing to say.
They think that once there are more home chargers available, especially in apartments and low-income housing, people will have a real choice between EVs and gas cars. It will be interesting to see how preferences change then. For now, it’s not surprising that EV owners stay loyal to their Tesla.
Misleading Statistics 7 The True Market Picture
While Edmunds claimed that over 50% of Tesla owners are trading in their EVs for gas cars, the S&P Global data tells a different story. Only 11% of Tesla owners are switching to traditional vehicles, while around 70% choose another Tesla.
Between early January 2023 and late February 2024, about 60,000 Teslas were traded in, sold, or returned after lease-end. Of these, over 42,200 were replaced with other Tesla EVs, and only 7,710 owners opted for gas or diesel cars. This comprehensive data shows that most Tesla owners are upgrading to newer EV models, not abandoning the EV lifestyle.
Bottomline
Yes, it’s true that Tesla owners are switching their cars but to newer Teslas mostly!
Edmunds’ data doesn’t provide a full picture of Tesla owner behavior due to the data’s core limitation. It only comes from traditional car dealerships and covers trade-ins. S&P data is enough to give you a clearer picture of the status quo of the current Tesla owners choosing gas cars over a Tesla.
Share your views on what you think of the survey report.
A related and very interesting number is how long Tesla owner keep their car. Obviously there would be a bump aruond 3 years (for lease endings) but that number and how it changes over time is a good indicator of the satisfaction with the car.