There’s been a lot of controversy surrounding Tesla and Elon Musk these days. But is it the reason for the decline in sales of Tesla models on used car lots or is there something else going on? The answer? A combination of both.
Tesla Resale Values Are Sinking Faster Than All Other Brands
You can look at the falling used Tesla prices in two ways. If you’re looking for one, it’s a great time to get a good deal, but if you have one that you’re ready to sell, you’re probably in for a rude awakening because you probably won’t get as much for it as you would have at the beginning of the year.
The rest of the used car market, including other used EVs is not dropping. The market is actually expanding with more shoppers doing online searches for used EVs. Overall, used EV prices have dropped, but other brands’ drops are significantly lower than Tesla’s.
Backlash and the Political Divide
Elon Musk’s high-profile support of President Trump and his involvement in politics did not do his brand any favors. It’s not clear how much this directly impacted Tesla used vehicle sales, but the data still suggests it had an effect.
Tesla seems to be in the middle of a political tug-of-war. It gained a few supporters from the right but lost many customers who lean to the left. The small uptick in red states is significantly lower than the decrease in blue states.
New Car Price Cuts
Another factor that may be contributing to the decline in the value of Teslas on used car lots is the availability and lower cost of buying a used EV. The cost of a new EV has been fairly steady over the past few years, with the average price only up about 3% year over year.
As more affordable new EVs become available, buyers may be gravitating toward the new car market instead of buying used. More options available also means that there are more used EVs available, giving used car buyers more options to choose from in addition to the used Teslas.
Increase in People Who Want to Sell Their Teslas
Tesla’s controversy may be leading to an increase of Tesla owners who want to get ride of them. Some owners who purchased their Tesla before Musk became the face of DOGE are selling their vehicles on principal, and selling long before they are paid for, just because they don’t want to be associated with the brand any more.
This is leading to a surplus of Tesla’s on used car lots, which leads to falling prices.
Who Wins in the Tesla Sales Slump?
The clear winner in the used Tesla sales slump is the buyer. If you’re looking to get into your first used EV, you can find the lowest prices on used Tesla’s. The downside is that you might have to deal with some backlash from angry people who blame Musk and his team for the recent economic downturn.
