Tesla Continues to Thrive in the Used Electric Vehicle Market
Tesla, despite facing some brand damage from CEO Elon Musk’s political controversies, remains a highly sought-after brand in the secondary market for electric vehicles. The recent dip in used Tesla prices earlier this year was just a minor setback, as new data suggests that Teslas are actually thriving in the used EV market.
Battery health and research start-up Recurrent released a study indicating that used Tesla prices did not crash as expected. While there was a brief 2% dip in April due to an increase in Tesla inventory, overall, the brand’s vehicles have been selling well in the used market.
In fact, Teslas accounted for nearly 50% of all used EV sales in May, with the average days of supply falling to just 28 days compared to 44 days for used internal combustion engine vehicles. This indicates a strong demand for discounted Model 3s and Model Ys, despite some owners trading in their Teslas.
The popularity of Teslas in the used market can be attributed to the company’s overall advantage in the EV market. With millions of Model 3s and Ys sold since their launch, these vehicles are now entering the secondhand market in large numbers. Additionally, Tesla’s Supercharger network has become a key selling point for buyers looking for convenience and reliability in charging.
The Recurrent study also highlights that used EVs eligible for the $4,000 federal tax credit are selling six times faster than those that do not qualify. This underscores the impact of incentives in driving buyers towards the second-hand EV market. However, with these tax credits set to expire on Sept. 30, it will be interesting to see how buyer enthusiasm may shift.
Overall, the used EV market is seeing a surge in models entering the market, with about 34% of used EV inventory priced under $25,000. This presents a compelling value proposition for buyers looking for modern, technologically advanced cars at affordable prices.
In conclusion, despite some challenges, Tesla continues to maintain its strong presence in the used electric vehicle market. With a growing segment of affordable, long-range used EVs, Teslas are leading the pack and providing buyers with an attractive alternative to traditional gas cars. If you’re in the market for a reliable and cost-effective vehicle, used EVs, particularly Teslas, may be the better deal to consider.