People are buying up used Teslas as the average sale price dips

There’s been a rise in people listing their Teslas this year, and it looks like many of the vehicles are finding buyers as the average resale price dipped slightly last month.

Data released on Wednesday from Cox Automotive indicates that the number of used Teslas sold increased by 27% month-over-month in April. The increase brought the automaker’s share of the used-car market to an estimated 47%. Chevrolet and Ford followed, with 8.9% and 6% of the used-car market, according to the data.

The average sale price for used Teslas in April decreased 1.8% month over month. The overall average listing price for used EVs decreased 2.8%, according to Cox Automotive’s data, up from 3.8% from the same period last year.

Tesla’s growth in the used-car market comes as the EV giant has had a tough start to the year. In addition to its first-quarter vehicle deliveries being 13% lower than the same period last year and its worst since 2022, the company has also been mired in months of boycott efforts resulting from Elon Musk’s political involvement.

Following harassment and vandalism aimed at Tesla stores and owners of the brand’s vehicles, some owners have shared plans to ditch the vehicle, and others have posted TikTok videos of trading in their Teslas for a new EV. Cadillac said this week that it’s attracting more Tesla owners, specifically for its Lyriq model.

However, Joseph Yoon, Edmunds’ consumer insights analyst, told Business Insider that the increase in used-Tesla sales doesn’t necessarily reflect politically motivated offloading. With the value of used Teslas falling dramatically over the past year, Yoon said that many likely can’t afford to sell their vehicles if their values don’t align with its CEO.

“Tesla buyers, they don’t have that kind of just cash to burn for the sake of feeling better about themselves,” Yoon said.

Cox Automotive director of industry insights Stephanie Valdez Streaty told BI that Tesla’s market share in the used-EV market is correlated with the automaker’s dominance in the overall EV market. Up until last year, Tesla held around half of the EV market share, and in 2020, they held close to 80%, Valdez Streaty said.

“They’ve just been at it a long time,” Valdez Streaty said. “So, there’s a lot more Teslas in the marketplace that become used Teslas.”

Tesla hasn’t launched a mass-market vehicle since 2020 when it released the Model Y, which went on to become one of the top-selling vehicles in the country. The Cybertruck, launched in late 2023, currently starts at $69,990, and a March recall filing revealed that fewer than 50,000 had been sold. As the company faces an increasingly aging car line-up, the used EV market is growing.

Valdez Streaty said that Tesla’s used cars are, on average, $7,000 less expensive than the average pricing for all used EVs. Its affordability and the options available can make it a good option, she said.

While it’s still notable that some Tesla owners say they are ditching their vehicles because of politics, it’s not clear whether it’s happening at scale, Yoon said. For context, Tesla held an estimated 53.3% market share in the used-car market in 2022, 44.5% in 2023, and 44.7% in 2024.

There was a bright spot for Tesla in the Cox Automotive data — sales of new vehicles appear to be on the rise.

While most auto manufacturers saw a monthly decrease in new vehicle sales, Tesla was one of the few that reported sales growth for new vehicles, with a 3% increase driven by Model Y sales. In April, Tesla sold an estimated 25,231 of its Model Y, which was recently refreshed. GM and Nissan were among the other brands highlighted in the report that saw a growth in new EV sales.

The report said that the growth in used EV sales comes at a time when EVs face continued challenges with affordability, availability, and additional uncertainty due to looming tariffs. A recent consumer survey conducted by Cox Automotive indicates that nearly 50% of respondents believe tariffs will significantly impact their decision to buy an EV.

The post People are buying up used Teslas as the average sale price dips appeared first on Business Insider.