Tesla Model Y Owner Feels Ashamed Over Purchasing Car for its Eco-Friendliness, Due to Elon Musk's Actions
Tesla Faces Challenges as Model Y Remains Best-Seller Amidst Competition
The Tesla Model Y, a pioneer in automotive innovation, has made history as the first production vehicle to use a single-piece rear underbody casting, known as the gigacast, and the first to integrate a structural battery pack into the body. However, the brand's success has been met with challenges in recent years.
In 2021, Tesla led the way in customer loyalty, but its advantage began to wane as rivals such as General Motors, Hyundai, and BMW released new electric vehicles (EVs), while Tesla's lineup remained largely unchanged since the introduction of the Cybertruck in 2020. This stagnation has led to a "trust gap" that has influenced purchase intent.
Elon Musk's political activism and the associated backlash have also contributed to a decline in Tesla's brand loyalty. The loyalty rate fell sharply after July 2024, bottoming at 49.9% in March 2025, before recovering to 57.4% in May. The U.S. loyalty reached a high point in June 2024, with 73% of Tesla households choosing to buy the brand again.
Despite these challenges, the Model Y remained the world's best-selling car model in 2023. However, sales figures for the first half of 2025 showed a 24% decrease in the U.S. and a 33% decrease in Europe. The decline can be attributed to several factors, including retooling for a refreshed Model Y and the rising competition from brands such as Rivian, Polestar, Porsche, and Cadillac.
Tesla's production was affected by several weeks of retooling for a refreshed Model Y, contributing to the decline in sales. The company's global sales also slowed down in 2025, with a 13% decrease in U.S. sales volume and a 33% decline in Europe during the first half.
The future of Tesla will depend on how fast the company refreshes its products, strengthens brand trust, and converts the autonomy narrative into everyday value for owners. The board of Tesla, despite a sharp fall in customer loyalty and a legal challenge to Elon Musk's prior pay package, approved a new grant of 96 million shares worth about $29 billion. The recipients of this grant have not been explicitly listed in available sources.
In conclusion, while the Tesla Model Y continues to lead the way in innovation, the brand faces significant challenges in maintaining its market position in the face of increasing competition and a decline in customer loyalty. The company's ability to adapt and respond to these challenges will be crucial in determining its future success.
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