The average price of a used Tesla has risen 4.3% since the $7,500 tax credit for new electric vehicles ended in September, according to iSeeCars data. This increase contrasts with falling prices for other used EVs, amid a surge in secondhand EV sales. Tesla owners benefit as resale values recover from recent declines.
The market for used Teslas is experiencing a notable uptick following the termination of the federal $7,500 tax credit for new electric vehicles in September. Data from iSeeCars indicates that the average price of a used Tesla climbed 4.3% between September and January. This rise is particularly pronounced for the luxury Model S and Model X, which saw the largest price increases among used EVs.
Elon Musk announced in January that Tesla plans to discontinue the Model S and Model X in the coming months to allocate resources toward the company's Optimus robot project. In contrast, the average price of used non-Tesla EVs decreased by 3.6% over the same period, with the Porsche Taycan being the sole exception among non-Tesla models to record a price increase.
The broader automotive sector faces an 'EV winter,' characterized by soaring prices and automakers canceling new models after the tax credit's end. As a result, buyers are shifting toward the used-car market. Cox Automotive reports that sales of used battery-powered vehicles jumped 21% in January compared to the previous year, while new EV sales dropped nearly 30%.
Tesla maintains dominance in the US used EV market, with used Teslas outselling those from Audi—the second-largest brand—by more than 10,000 vehicles in January. This development provides relief to Tesla owners, whose resale values had plummeted since 2022 and reached new lows last year. The decline was linked to backlash over Musk's involvement in government spending cuts via his role at DOGE, from which he has since departed. For instance, the average price of a secondhand Model 3 now stands at $25,700, offering an accessible option for buyers awaiting Tesla's unfulfilled promise of a $25,000 EV.
