All used EVs can be difficult to sell
Driversare turning in their Teslas to used car dealersin drovesrecently, but Elon Musk's politics isn't the only reason.
Since January, the number of used Teslas on lots hasballooned nearly 196% as of March, effectively tripling, according to data provided to ConsumerAffairs bycar-shopping app CoPilot.
That compares with an around 124% increase, or more than double,among electric vehiclesexcluding Tesla and a nearly 94%increase for non-EVs.
Year over year, the number of used Tesla listings surged around 73% in March, compared with 39% among EVs excluding Tesla.
There havegenerally been more used EVs going up forsaleafterowners have turned in them in to upgrade to newer cars and technology, which has affected Tesla more partly because the automaker has been around longer and sold more EVs than its competitors.
Spring is new-car season and used EVs struggle to sell
Spring is also a busy time for buying new cars and so seasonality is a factor in in the increase of used car inventory, but Teslas and other used EVs have beenharder to sell than gas-powered cars because ofconcerns around price, charging and batteries.
"There are more used EVs on lots because they are more difficult to sell," CoPilot CEO Pat Ryan toldConsumerAffairs."They're more expensive, they come with the added hassles of charging andbattery issues, and consumers are definitely shying away from them more in recent months."
But Tesla is still pullingahead in the number of used EVs going up for sale, showing howthe automakeris now facing much stiffer competition with a wider pool of EVs to choose from, which has been complicated by the loss of exclusive access to its charging stations and Musk's involvement in politics.
"The bottom line is that Tesla is dealing with more serious competition than it has in the past, which will require them to increase the speed of product development, especially redesigning popular models," Ryan said.
Tesla sales down since 2023
Tesla's sales have even been declining since 2023, despite the Model 3and Model Ybeing the best selling EVs in history, according to a March 26 presentation by Cox Automotive.
"Tesla's high watermark as an automaker may be in the past," said Stephanie Valdez Streaty, Cox Automotive's director of industry insights, in the presentation. "The rise in Tesla EV listings is in part the result of more product availability we are seeing with all EVs."
That isn't to say the many controversies surrounding Musk, including his support for President Donald Trump and efforts to cut government jobs and regulations, haven't been harmful to the brand.
A February 2024 survey by Morning Consult found that favorable opinions of Tesla among Republicans rose 16 pointsfrom August, while falling 22 pointsamong Democrats.
"It's undeniable that Elon Musk is an influential factor whose actions are impacting the brand's image and only time will sell if Tesla can navigate this critical juncture and find a new engine for growth," Streaty said."We know that will be the central story in the electric vehicle market this year."
Is it a good time to buy a used Tesla?
For people unconcernedabout Elon Musk's politics, now might be a good time to snag a deal on a used Tesla.
The average price for a used Tesla fell to$29,959 in March, compared with $33,225 a year ago, according to CoPilot.
The Wall Street Journal's auto columnist Dan Neil recently bought a used Tesla and explained why way in a column titled,"Here's why I bought a Tesla (in spite of Elon"):
"Recently I bought a car, just like any other civilian. My daughter is getting her license in September and she will need one next year for work and school. I ginned the numbers for months, through all the appropriate algorithmspurchase price, operating cost, advanced safety, comms and convenience features. Bringing a lifetimes expertise to bear, I arrived at what I knew to be the most rational, reasonable and responsible choice I could make."
Tesla also had the biggest dropin used car prices in February among all brands, with a nearly 14% average decline from a year prior compared with a nearly 1% decrease among all used cars,according to a reportfrom used-car website iSeeCars.
Trump's incoming tariffs, which are essentially taxes on imported goods,are also likely to makethe prices of all cars less affordable.
Theres no indication prices will drop from their current levels throughout 2025 and, with tariffs looming, the price of both new and used cars could potentially rise," iSeeCar Executive Analyst Karl Brauer said in the report.
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Posted: 2025-04-04 18:10:28
