Tesla Used Car Prices Plunge
There is a price war among EV makers. At the same time, in the US, EV sales have weakened from a double-digit increase over the last several years. Tesla helped trigger this price war, perhaps to keep market share. While that may have worked, the cut in its new car prices has also affected the prices of its used cars.
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According to a new study by iSeeCars titled “Aggressive Tesla Price Cuts Pummel the Used EV Market,” –” Used electric cars have dropped 10 times faster than gasoline models over the past year.”
The study examined used car prices across 1.8 million used cars between one and five years old. Used EV prices have been dropping, and they were down between 17% and 39% year-over-year during the 12 months that ended in February. During the same period, the price of used Teslas is down 28.9%.
Karl Brauer, iSeeCars Executive Analyst, pointed out that used car prices are moving differently.“Used car shoppers are seeing a bit of a break in vehicle costs, but we’re still well above the pre-pandemic average used car price point of roughly $20,000, with no indication we’re going back to those levels any time soon.”
Between February 2022 and February 2023, the price of a used Tesla dropped $14,808 to $36,515. Used Chevy EVs did the best over the period, losing only $140 to $32,265.
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Among individual models, the car with the most significant drop was GM’s Chevy Bolt, which lost 30.4% of its value to $17,981. The Tesla Model X lost 24.6% of its value to $60,943. The Model 3 lost 24.1% of its value to $30,466. The Model S lost 20.5% to $58,875.
Will the Tesla used car price trend reverse itself? Perhaps. Tesla just raised the price of a new Model Y by $1,000, and EV price cuts may be slowing.
