- Used Tesla car prices are rising as the used electric car market booms after the $7,500 tax break expires.
- This is a relief to Tesla owners, who have seen resale prices decline in the past few years.
- The S and X models saw the biggest price increases. Elon Musk said Tesla will stop building its Optimus robots.
The used Tesla market is on fire.
The booming used electric vehicle market is pushing up prices for used Teslas, even as prices for other electric vehicles decline.
The average price of a used Tesla has risen 4.3% since the end of the $7,500 tax credit for new electric cars in September, according to data from used car seller iSeeCars.
The two used electric cars that saw the largest price increases were the luxury Tesla Model S and Musk announced in January that both models would be discontinued in the coming months to make room for the company’s Optimus robot.
This rise comes with a decline in the prices of other used electric cars. The average price of non-Tesla used electric vehicles fell 3.6% between September and January, according to iSeeCars data. The exception was the Porsche Taycan, which was the only non-Tesla model to see used car prices rise.
As the auto industry enters the grip of an electric vehicle winter with prices rising and automakers canceling new models after the tax break expires, electric vehicle buyers are turning to the used car market.
Sales of used battery-powered cars rose 21% in January from a year earlier, according to data from Cox Automotive, even as sales of new electric vehicles fell nearly 30%.
This is good news for Tesla. The brand dominates the used electric vehicle market in the United States, with Tesla’s used cars outselling it Audi, the second-largest retailer, sold more than 10,000 vehicles in January, according to Cox figures.
It’s also a relief for Tesla owners, who have seen their resale values collapse in recent years.
Prices for used Tesla cars have fallen sharply since 2022 and reached new lows last year amid backlash over CEO Elon Musk’s elimination of government spending through his role at DOGE, which he has since left.
Tesla fans are disappointed that the company never fulfilled its long-held promise of a $25,000 electric car as a consolation prize — a used Model 3 now sells for an average price of $25,700.
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