Tesla’s pre-owned car prices have dropped $18,000 since their peak six months ago, introducing the electric car brand to a new level of affordability.
Most car buyers cannot afford a new car and must rely on the used car market, which is an essential part of the auto industry.
When it relates to electrification, we often focus on the new car market because it is required to transform the industry and sustain the electric used car market, which is still in its infancy.
The Tesla pre-owned car market, in particular, is intriguing in the United States because it is relatively large, owing to Tesla’s ownership of the country’s EV market for many years.
Price cuts of brand new Tesla vehicles affected the used car market
Tesla used car prices have risen rapidly in recent years as the company’s new car prices have risen.
Around one point last year, used Model Y prices skyrocketed and began outperforming new Model Y vehicles.
The discounts could make electric vehicles cheaper for people initially priced out of the market.
Buyers in the United States and France may benefit from discounts and federal tax credits accessible in both countries for certain electric vehicle transactions.
Tesla’s global top-sellers, the Model 3 sedan and Model Y crossover SUV, have received price cuts ranging from 6% to 20% in the United States, with the basic Model Y now costing $52,990, down from $65,990.
However, used prices began to fall in December as Tesla started providing discounted rates at the end of the quarter.
They have continued to fall over the last month and crashed in recent weeks following Tesla’s massive price cuts across its entire lineup and implementation of the new federal EV tax credit.
These reductions are in addition to a $7,500 U.S. federal tax credit that went into effect for several electric vehicles on January 1 and could result in more than 30% discounts.
Tesla also reduced prices in the United States for its Model X luxury crossover SUV and Model S sedan.
They have continued to fall over the last month and crashed in recent weeks following Tesla’s massive price cuts across its entire lineup and implementation of the new federal EV tax credit.
These reductions are in addition to a $7,500 U.S. federal tax credit that went into effect for several electric vehicles on January 1 and could result in more than 30% discounts.
Tesla also reduced prices in the United States for its Model X luxury crossover SUV and Model S sedan.
Tesla lowers the cost of its top-selling models in key markets:
| MODEL | GERMANY | USA | CHINA |
| Model 3 Rear Wheel Drive | -12% | -6% | -14% |
| Model 3 Long Range | -9% | NA | NA |
| Model 3 Perrformance | -4% | -14% | -6% |
| Model Y Rear Wheel Drive | -17% | NA | -10% |
| Model Y Long Range | -4% | -20% | -13% |
| Model Y performance | -1% | -19% | -10% |
Tesla’s used car prices dropped by 8%
Over the last 30 days, used car market prices have dropped by less than 2%, while Tesla’s used car prices have dropped by more than 8%. It is even more pronounced over 90 days, with average used car prices down 5.5% versus Tesla’s down 17.7%.
Here are all of the price changes for used Tesla models:
| MODEL | AVERAGE PRICE | LAST 30 DAYS | LAST 90 DAYS | YEAR-OVER-YEAR |
| Tesla Model 3 | $40,386 | -8.32% | -18.97% | -20.39 |
| Tesla Model S | $53,304 | -7.16% | -16.72% | -19.96% |
| Tesla Model X | $71,779 | -7.18% | -15.65% | -14.55% |
| Tesla Model Y | $54,930 | 7.56% | -16.70% | -18.25 |
| Tesla Brand | $49,697 | -8.33% | -17.67% | -16.77% |
Since prices have dropped significantly, the vehicles continue to hold their worth reasonably well compared to new models.
Nevertheless, we are now witnessing a new level of accessibility in the used Tesla car market that has not previously existed.
