Used Tesla Sales Are Booming As Resale Values Tumble

As has been reported previously, Tesla resale prices have been plummeting for a variety of reasons including CEO Elon Musk’s controversial insertion into federal politics via the Trump administration’s Department of Government Efficiency.

Politics aside, the extreme loss of value being suffered by current owners is suddenly manifesting itself as a boom for used Tesla shoppers. Cox Automotive reports that the company’s pre-owned EV sales got a whopping 27% boost last month as average transaction prices dipped by 1.8%. That’s on top of the 10.1% average year-over-year drop in value for Tesla vehicles realized prior to that.

Problem is, where Tesla used to more or less own the electric car market, it’s now just one of many EV-selling brands. It’s stuck with an aging inventory that’s become difficult to sell, with only the Model Y SUV seeing a significant refresh of late. According to Cars.com there are now 31% more EVs available to buyers than there were a year ago. Newer entries at the high end of the market from fresher brands like Rivian, Lucid and Polestar and can meet or beat Tesla performance. At the other end of the pricing spectrum, a wave of more affordable EVs on the market from mainstream brands like Kia and Hyundai are bringing in customers for which Tesla’s wares were too expensive.

And Tesla values are also being adversely affected by an additional wave of bad publicity. A recent survey showed that nearly half of all Tesla owners reported that their vehicles have been intentionally vandalized, presumably at the hands of Musk/Tesla-bashers. What’s more, around three-quarters of respondents fear being targeted moving forward as adverse sentiments toward the automaker continue to foment.

Plus, Tesla is reportedly sitting on $200 million worth of unsold Cybertruck models that can’t seem to find buyers, most likely for its polarizing styling. In addition, it’s been involved in multiple widely reported recalls, with the latest involving body panels randomly falling off the vehicle. Sales had slowed to the point where Tesla dealers reportedly stopped taking Cybertrucks in trade or buying them outright because they can’t move the new models gathering dust. However, the latest reports suggest that situation is improving, albeit with lowball offers.

Of course Teslas aren’t the only EVs to drop in value. Cox Automotive says electric vehicle listing prices have fallen industry-wide by 2.8% in April, though that’s actually better than the 3.8% drop recorded a year earlier. Upscale EVs (including Teslas) are among the biggest losers in this regard, and conversely are the best deals among pre-owned models these days.

According to a study recently conducted by iSeeCars.com, the five-year-old used EV that’s suffered the biggest drop in resale value over the past five years is the Jaguar i-Pace sedan, which has lost a whopping 72% of its original MSRP to depreciation (a $51,953 loss). On the other hand, that makes it an outstanding value in the used-vehicle market.

The next biggest EV loser according to the website’s survey of 800,000 five-year-old vehicles transaction prices is the Tesla Model S which has lost $52,165 or a stiff 65.2% loss of value. That makes it another great deal among pre-owned EVs

Also suffering a steep depreciation curve is one of the segment’s veterans, the Nissan Leaf, which has dropped an average of $18,043 (a 64.1% loss) of its original worth over five years.

Also on the biggest losers list is the Tesla Model X, which has seen its five-year value slide by an average $53,846 (-63.4%) and the Tesla Model Y, at an average $36,225 (-60.4%) drop.

Another pricey EV for which an original owner’s loss is a used EV shopper’s gain is the red-hot Porsche Taycan, which on average has lost $59,691 (-60.1) to depreciation over the past half decade.