Used Tesla prices have soared since the end of the $7,500 tax credit, even as other EVs get cheaper
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- Used Tesla prices are rising as the secondhand EV market booms following the end of the $7,500 tax credit.
- That's a relief for Tesla owners, who have seen resale prices plunge in the past few years.
- The Model S and X saw the largest price hikes. Elon Musk said Tesla would discontinue them to build its Optimus robots.
The market for used Teslas is heating up.
A booming secondhand EV market is pushing used Tesla prices up even as other electric vehicles get cheaper.
The average price of a used Tesla has climbed 4.3% since the end of the $7,500 tax credit for new electric vehicles in September, according to data from used car seller iSeeCars.
The two used EVs with the largest rise in prices were Tesla's luxury Model S and X vehicles. Musk announced in January that both models would be discontinued in the coming months to make room for the company's Optimus robot.
The spike comes as other used EVs get cheaper. The average price of used non-Tesla EVs fell 3.6% between September and January, per iSeeCars data. The exception was the Porsche Taycan, which was the only non-Tesla model to see used prices rise.
With the auto industry in the grip of an EV winter as prices soar and automakers cancel new models after the end of the tax credit, electric vehicle buyers are turning to the used-car market.
Sales of used battery-powered vehicles surged 21% in January from the previous year, per data from Cox Automotive, even as sales of new EVs fell nearly 30%.
That's good news for Tesla. The brand dominates the used EV market in the US, with used Teslas outselling Audis, the second-largest retailer, by more than 10,000 vehicles in January, per Cox figures.
It's also a relief for Tesla owners, who have seen their resale values collapse in recent years.
Used Tesla prices have been in freefall since 2022 and hit new lows last year amid backlash over CEO Elon Musk gutting government spending through his role at DOGE, which he has since left.
Tesla fans disappointed that the company never made its long-promised $25,000 EV do have a consolation prize — a secondhand Model 3 now sells for an average price of $25,700.