The cost of a used Tesla is starting to fall, new data shows.
Until recently, it seemed that customers would happily pay more for a used Tesla than a new one to avoid being on a waiting list for months. The buoyant market also proved lucrative for current owners, who found they could make a few bucks selling their Tesla electric vehicle (EV). But that opportunity seems to be disappearing fast now.
data shared by Reuters on Tuesday suggests that used Tesla prices are falling faster than other automakers’ vehicles.
It shows that the median price for a used Tesla last month was $55,754, up from $67,297 in July, down 17%. This contrasts with a 4% decline in the entire used car market over the same period.
Additionally, used Teslas stayed at dealerships an average of 50 days in November, compared to 38 days for all used vehicles, according to market research firm Edmunds.
Reuters’ report notes how factors such as rising fuel prices helped boost sales of Tesla’s EVs, while trading with customers who bought new EVs to resell also had an effect. The report quotes a man who bought a new 2021 Model Y for $49,000 before selling it for $61,000 just three months later.
But lately, demand for Teslas has waned as fuel prices fall and the automaker faces increased competition in the EV market. Rising interest rates and the fear of a possible recession are also giving reason to think about larger purchases.
The news of Tesla’s falling used-car prices comes at a challenging time for the company’s stock value, which fell 9% on Tuesday alone and 70% year-to-date. Reasons include concerns about economic stability, increasing competition in the electric vehicle industry and reports this week that the Tesla plant in Shanghai, China, is shutting down production for part of January. Other EV manufacturers have also seen their share value decline recently.
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