Used Tesla prices are falling fast
Teslas generally hold up better in value than other electric cars, but used Tesla prices are falling rapidly, according to a recent study. Reuters report.
The average price of a used Tesla in November 2022 was $55,754, down 17% from July’s peak of $67,297, according to the report. Meanwhile, the overall average used car price fell 4% over the same period, the report noted.
Moving on to another key metric, the average amount of time used Teslas spent at dealerships in November 2022 was 50 days, much higher than the overall average of 38 days for autos. used cars, according to reports.
2020 Tesla Model X
Reuters saw the Tesla bubble burst. Gas prices rise due to Russia’s invasion of Ukraine, along with price increase on new Teslas, pushed up used Tesla prices earlier this year, according to the report. It noted that nearly a third of used Tesla vehicles for sale in August 2022 were resale vehicles, compared with the industry average of 5%, indicating more owners are selling their newly purchased vehicles. and increase the price of used cars.
The drop in gas prices and Tesla’s recent sale of new cars have reversed that trend. In recent weeks, Tesla has slashed the price of the Model 3 and Model Y by $3,750, then double that discount to $7,500. That happens to be the maximum amount of the federal EV tax credit, which will return in modified form next year, with some Tesla vehicles possibly eligible for that full amount through March.
Tesla Model 3 Performance 2019
The rise and fall in used Tesla prices also reflects changes in the used electric vehicle market as a whole. A recent series of used car sales reports have determined that Used EV prices have peaked sometime between July and September.
Auto industry executives believe that the high average EV prices — for new or used cars — are unsustainable. For example, the Stellantis CEO warned about market crash if electric cars don’t get cheaper, and Ford CEO Jim Farley sees an EV price war in the near future. That didn’t stop Ford from F-150 Lightning price increase by 40% compared with a year earlier.