Industry data shows that used Tesla prices are falling faster than other automakers This has dragged down demand for new Tesla vehicles.
For most of the past two years, Tesla owners who waited months for a new car had an unusual choice: either keep their new car or sell it to someone less patient and make some profit. But now, those days are numbered.
The average price of a used Tesla was $55,754 in November, down 17 percent from a peak of $67,297 in July, according to U.S. automotive consulting firm Edmunds. The value of the entire used car market fell 4 percent during the period. used Teslas spent an average of 50 days in dealer inventory in November, compared with 38 days for all used cars.
Rising gasoline prices due to the war in Ukraine have boosted demand for Tesla vehicles. Tesla is one of the few companies in the market that offers long-range electric cars. Tesla is raising prices faster than other cars, thus increasing its profit margins. Nearly one-third of used Teslas sold in August were 2022 models up for resale, analysts said. That means the original buyers intend to resell.
Tesla is not the only one affected. The U.S. used car market is booming at a time when the global auto manufacturing industry is struggling. But now, an analyst says, the U.S. used car market is now facing a “used car recession” after used car seller CarMax last week reported an 86 percent drop in third-quarter profit.