Used Tesla prices average less than overall secondhand market for first time ever as sentiment toward car maker softens

New York Post

2 days ago

The average price of a used Tesla has fallen below the average for the overall US used car market — a first for Elon Musk's electric vehicle maker.
Data from CarGurus shows the average used Tesla sold for $27,814 in recent weeks, compared to $28,039 for the broader used car market.
The shift comes even as overall used car prices have ticked higher, up 1.22% year over year. Tesla's average, by contrast, is down 4.59% over the same period.
4 For the first time ever, the average price of a used Tesla has fallen below the average for the overall US used car market.
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The trend marks a reversal from last year, when Tesla's resale values fell in line with the broader market during a nationwide drop in used car prices.
When prices for most used vehicles began recovering in March 2025, Tesla's kept sliding.
4 Data from CarGurus shows Tesla's used car prices have fallen below the overall US market average for the first time.
Cargurus
Breaking down the numbers, every Tesla model is selling for less than it did a year ago.
The Cybertruck has seen the steepest annual decline, with prices down more than 30% to an average of $83,963, although it has posted small gains over the last few months.
The Model S is down 22.61% to $26,534, while the Model X has fallen 16.8% to $37,747.
Tesla's most affordable sedan, the Model 3, is off 8.04% year over year to $23,318, while its best-selling Model Y — which moves more units than any other Tesla — is down nearly 12% to $29,216.
The continued drop in the value of Model Y vehicles is pulling the brand's overall average lower despite modest rebounds for some other models.
4 Tesla's sales have fallen in nearly every major market in 2025, with US deliveries down about 9% year-over-year.
AP
Industry watchers say the glut of Teslas in the used market is adding to the pressure. Many owners are trading in their cars for other brands, boosting supply and forcing sellers to cut prices to compete.
The fall below the industry's average resale price is striking because it means Tesla's lineup — which has historically commanded higher-than-average values thanks to its technology, performance and brand image — is now cheaper on average than the mix of vehicles that includes lower-cost mass-market models.
For a brand that has cultivated an image of innovation and exclusivity, the shift signals a notable change in perception.
Musk and President Trump's relationship swung from open hostility in previous years to a high-profile political alliance in 2024, only to collapse in 2025 amid policy disputes, personal attacks, and threats to Musk's business interests.
Both have since declared the relationship over, with the Tesla CEO expressing some regret for his harshest comments while pursuing his own political ambitions outside Trump's orbit.
Market analysts and used car platforms are not pointing to a cause for Tesla's sinking used car price.
4 The continued stream of owners switching away from Tesla suggests that sentiment toward the brand has softened.
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While the Cybertruck and Model 3 have shown small upticks recently, there's no clear sign of a full rebound.
With Tesla's most popular model still sliding and more used inventory hitting the market, prices could remain under pressure in the months ahead.
Tesla's sales have fallen in nearly every major market in 2025, with US deliveries down about 9% year-over-year in the first quarter and 11% lower through the first half of the year.
Globally, the company delivered about 720,803 vehicles in the first half, a 14% drop from the same period in 2024, with steep declines in Europe and an 8% year-to-date drop in China.
Analysts now expect Tesla to deliver between 1.35 million and 1.66 million vehicles worldwide in 2025, well below the 1.79 million it sold last year.
The Post has sought comment from Tesla.