Tesla’s brand loyalty has dropped significantly over the past year.
Many former EV owners are choosing gas and diesel alternatives.
Loyalty for Tesla now trails Ford but remains ahead of Chevrolet.
Not too long ago, traditional automakers were struggling to keep pace with Tesla, as more buyers left their gas-powered cars behind for the Californian brand’s electric line-up. Now the tide appears to be shifting. Fresh data shows Tesla’s brand loyalty has dropped noticeably, with a growing number of owners not only moving to rival marques but, in some cases, even leaving EVs behind altogether for diesel-powered trucks from the likes of Chevrolet and Ford.
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A new study from S&P Global shows that in the second quarter of 2025, Tesla’s brand loyalty in the US dropped 9.4 percent from the year before, landing at 58.1 percent. That figure put the company behind Ford at 59.6 percent, though it stayed just ahead of Chevrolet at 58 percent, Toyota at 57.3 percent, Honda at 54.9 percent, and Mercedes-Benz at 54.2 percent.
Aging Line-Up and Image Issues
According to S&P Global, loyalty rates at Tesla started to fall earlier this year, due in part to its aging line-up and reliance on just two high-volume vehicles, the Model 3 and Model Y. Both have received updates, but their foundations trace back several years. With no fresh addition, buyers are increasingly tempted by rival brands offering broader choices. Additionally, the political leanings of head honcho Elon Musk continue to turn off many owners.
Analysts note that Tesla’s drop is not simply a rejection of electric cars, but rather a reflection of buyers migrating to brands offering more diverse lineups and equipment choices. BMW, Mercedes-Benz, and Toyota are among the biggest winners when Tesla’s sedan and SUV buyers defect, highlighting the brand’s limited variety.
Switching to Other Fuels
The data shows that from those who leave Tesla, 68.9 percent chose another EV as their next vehicle in the first half of this year, down from a peak in the mid-70s during 2023. The remaining 31.1 percent switched fuel types, with 28.2 percent moving to hybrids and an unexpected 2.9 percent opting for diesel, an unusual move for former EV drivers.
Other interesting findings from the study show that when ex-Tesla owners moved to Chevrolet, 55 percent went back to gas, 37 percent chose another EV, and nearly 8 percent somehow landed in diesels, according to Autonews, presumably pickups like the Silverado that still offers them.
Tesla’s advantage over Ford has also shrunk, with its conquest ratio sliding to 1.9-1 from 2.4-1 a year earlier. Among defectors to Ford, half bought gasoline models, 29 percent stayed electric, 13 percent opted for hybrids, and 5 percent decided diesel was the answer. BMW doesn’t look much better for Tesla either: 47 percent of switchers there picked gas, 42 percent went electric, and 11 percent settled on hybrids.
EV Repeat Buyers Losing Momentum
Overall, loyalty to battery-electric vehicles has slipped to 58.7 percent in 2025, down from nearly 68 percent two years ago, pointing to a broader slowdown in repeat EV purchases. Traditional internal combustion models still hold the highest loyalty at around 84 percent, though that figure is gradually declining. Hybrids are gaining ground but continue to trail both ICE and BEVs.
In contrast, loyalty is strengthening among buyers of other electric marques. Fuel-type loyalty for non-Tesla EVs has climbed to 46.4 percent, up from roughly 45 percent in 2020, suggesting adopters outside the Tesla ecosystem are more committed to staying electric. Overall EV brand loyalty has also improved, rising to 43.5 percent compared with around 40 percent in 2021, helped by a wave of more competitive and appealing models.
Tesla Still Winning Over Many Buyers
Even with defections mounting, Tesla continues to attract a healthy share of conquests. In the second quarter, it won over about twice as many Chevrolet drivers as Chevrolet did Tesla drivers. That ratio, however, is down sharply from 4-1 it had been just a year ago.
The difference is even more stark when looking at BMW. Tesla’s conquest-to-defection ratio against the German brand was around 9-1. Today, with BMW fielding a much broader range of electric models, that figure has fallen to just 1.5-1.
Preferences Over Price
One crucial detail stands out: price is not the driving factor. Data shows that most households moving away from Tesla are buying vehicles in the $60,000 to $75,000 range, indicating the trend has more to do with preference and product variety than with saving money.
“Tesla brand loyalty is still strong, but it’s no longer the default,” said S&P Global. “In a more competitive, more body style-rich EV market, even category leaders are being held to a higher standard.”
