Tesla’s model injury is eroding the worth of used Tesla automobiles at a speedy fee, as homeowners rush to promote theirs.
It’s breaking the used Tesla market as costs are plunging simply because the broader used automotive market is recovering.
After a number of powerful years for the used automotive market following the pandemic, it’s lastly beginning to get better over the past month.
Financial uncertainty and a worry of upper inflation as a result of Trump’s tariffs are prompting some consumers to shift from the brand new automotive market to the used automotive market.
From March 2024 to March 2025, common used automotive costs decreased by 2.68% within the US, however the pattern has lastly reversed.
In accordance with Automotive Guru‘s used automotive index, used automotive costs have risen a powerful 2.17% within the final 30 days alone.
Nonetheless, there’s an exception: Tesla.
The worth of used Tesla automobiles has been falling, like the remainder of the used automotive market, for the reason that pandemic; nonetheless, it isn’t benefiting from the reversal within the present macroeconomic scenario.
Whereas common used automotive costs rose greater than 2% within the final 30 days, Tesla’s used automotive costs decreased by 1.34% within the US.
That’s as a result of oversupply, as many Tesla homeowners are promoting their automobiles to distance themselves from the Tesla model, which is related to CEO Elon Musk and his more and more divisive political opinions.
The demand to promote used Tesla automobiles is so excessive that many used automotive sellers, who had been preventing to accumulate stock only a 12 months prior, are beginning to be reticent about shopping for Tesla automobiles as the worth decreases so quickly.
In Quebec, Le Journal de Montréal spoke with native used automotive sellers and attended a automotive public sale the place many Tesla automobiles had been up on the market, with some promoting for half the worth they had been promoting for simply over a 12 months in the past.
Éric Piuze, proprietor of a used automotive dealership on Montreal’s South Shore, mentioned (translated from French):
“Individuals don’t need them anymore. The Elon Musk impact may be very actual in Quebec.”
The used automotive sellers on the public sale famous that they aren’t assured they’ll promote the used Tesla shortly sufficient to keep away from additional worth decreases.
Moreover, they be aware that potential consumers are lowballing on Tesla automobiles as a result of they’re conscious that stock is excessive, making a purchaser’s market.
Sellers are additionally seeing increased defaults on Tesla automotive funds, as consumers who took on debt to buy them only a few years in the past wrestle to make funds.
Piuze added (translated from French):
Individuals paid some huge cash for Teslas. Through the pandemic, we noticed many individuals remortgaging their houses to purchase a Tesla. These days are over.
At its peak, the typical used Tesla worth was over $60,000 in 2022. Now, the identical automobiles are price a fraction, however their automotive funds are nonetheless excessive.
Electrek’s Take
Even with the used automotive market lastly getting a breather from crashing costs, Tesla automobiles will not be benefiting in any respect. This highlights a big challenge within the used Tesla market. It’s damaged.
The market can’t take up the surge in folks promoting their Tesla automobiles.
I wouldn’t need to be an organization holding a fleet of Tesla automobiles proper now. The worth erosion is spectacular.
I assumed that perhaps the Cybertruck was dragging your complete Tesla market down, with a 6.64% lower in used worth over the past 30 days. Nonetheless, the Mannequin Y alone noticed a 1.67% lower throughout the identical interval.
The excellent news is that the overwhelming majority of individuals promoting their used Tesla automobiles are buying different electrical automobiles, thereby boosting the EV market. It’s additionally giving folks the prospect to get into Tesla automobiles for cheaper, though they need to count on the worth of these automobiles to lower quickly.
