New data shows that the price of a used Tesla has started to drop.
Until recently it seemed that customers were happy to pay more for a used Tesla than a new Tesla to avoid spending months on a waiting list. The booming market also proved attractive to existing owners who found they could make a few bucks selling their Tesla electric vehicle (EV). But that opportunity now seems to be fast disappearing.
Data shared by Reuters on Tuesday shows that used Tesla prices are falling more rapidly than those for vehicles from other automakers.
This shows that the average price of a used Tesla was $55,754 last month, down 17% from $67,297 in July. That compares with a 4% decline in the overall used car market over the same period.
In addition, according to research firm Edmunds, used Teslas stayed at dealers for an average of 50 days in November, compared to 38 days for all used cars.
The Reuters report details how factors such as rising fuel prices helped boost sales of Tesla’s EVs, while also affecting business from customers buying new ones. The report cited a man who bought a new Model Y in 2021 for $49,000 and sold it just three months later for $61,000.
But recently, demand has waned for Tesla as fuel prices plummet and the automaker faces increasing competition in the EV market. Rising interest rates and fears of a possible recession are also prompting people to think twice about making large purchases.
The news of Tesla’s declining used car prices comes at a challenging time for the company’s stock price, which plunged 9% on Tuesday alone and 70% since the beginning of the year. Reasons include concerns over economic stability, increasing competition in the EV industry, and reports this week that Tesla’s plant in Shanghai, China, is suspending production through January. Other EV makers have also seen their stock prices fall recently.