Used Tesla prices continue to tumble, and they just crossed a new threshold.
For the first time, a used Tesla is cheaper than the average used vehicle on CarGurus, according to Electrek, which called the news “nuts.”
The average Tesla now costs $27,814, while CarGurus typical price across all brands is $28,039.
The cost of a used Cybertruck has dropped the most over the last year: 30.4% to $83,963. The Model S is down 22.6% to $26,534, the Model X is down 16.8% to $37,747, and the Model Y is down 12% to $29,216. The most affordable offering is the Model 3, which is down 8% to $23,318.
“The fact that its average used car sale price would dip below the industry average, which includes inexpensive mass-market vehicles, is quite exceptional,” Electrek reported, noting used Tesla prices are down 4.6% year over year, while the market is up 1.2%.
“It’s proof that the Tesla brand has taken a massive reputational hit and there’s no clear recovery in sight,” Electrek stated.
CEO Elon Musk’s political activities in the United States and Germany have been widely blamed for Tesla’s issues this year, which include falling demand and stock struggles. Especially in Europe, deliveries have spiraled. The company has also had problems with its vehicles and is under investigation by the American government.
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Its robotaxi rollout has been rough, and the company could soon prioritize humanoid robots. If the EV pioneer makes such a move, it could slow the adoption of these money-saving and pollution-reducing automobiles.
“Although the brand has taken a significant hit over the last year, Tesla is still regarded as a premium brand in the industry,” per Electrek. “The fact that its average used car sale price would dip below the industry average, which includes inexpensive mass-market vehicles, is quite exceptional.”
While this may be bad news for the company and industry, it is great news for consumers. Tesla fans can get a used electric vehicle at a bargain price, while those on the fence or even uninterested could be swayed by such low costs.
Commenters discussed why the price of a used Tesla continues to plummet.
“With new vehicle retail sales slowing, I’ve seen a lot of evidence Tesla has been dumping new inventory into the low-cost agency fleets that specialize in weekly and monthly rentals to Uber and Lyft drivers,” one said. “Those vehicles lead a hard life and when they hit Mannheim Auctions, their residuals are poor, driving down used values across the board.”