Tesla (TSLA) used car prices plummeted to $18,000 from its peak six months ago, bringing a new level of affordability to the electric car brand.
Most car buyers cannot afford to buy a new car and turn to the used car market, which is an important part of the auto industry.
When it comes to electrification, we always focus on the new car market. This is what it takes to transition the industry and feed the still fairly young electric used car market.
The used Tesla market is of particular interest in the United States. Because Tesla is pretty big thanks to the fact that it has owned the majority of the US EV market for years.
As Tesla has increased its new car prices over the past few years, the prices of used Tesla cars have also risen rapidly.
At some point last year, the price of used Model Ys got out of hand and they started selling for more than new Model Y vehicles.
However, used prices finally started to drop in December as Tesla began offering discounts at the end of the quarter.
After Tesla implemented massive price cuts across its lineup and the new federal EV tax credit went into effect, they have continued to decline over the last month and have plummeted over the past few weeks.
To be fair, the overall used car market also fell over the same period, but it’s nowhere near Tesla’s level.
Used car market prices have fallen less than 2% over the past 30 days, while Tesla’s used car prices have fallen more than 8%. The 90-day average used car price fell 5.5%, even more so than Tesla’s 17.7% decline.
Here are all the price movements for used Tesla models:
|model||average price||Last 30 days||Last 90 days||year-on-year|
|Tesla Model 3||$40,386||-8.32%||-18.97%||-20.39|
|Tesla Model S||$53,304||-7.16%||-16.72%||-19.96%|
|Tesla Model X||$71,779||-7.18%||-15.65%||-14.55%|
|Tesla Model Y||$54,930||7.56%||-16.70%||-18.25|
Although the prices have come down significantly, the vehicles still retain a significant value compared to newer models.
Nevertheless, we see a new level of affordability in the used Tesla market that hasn’t existed in a long time.
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