Tesla’s declining popularity: Tesla’s appeal in the U.S. is diminishing, impacting both new and used car markets.
Used car price drop:
-Since October 2023, the average price of a used Tesla has fallen by 7% (three times the drop seen in other EVs).
-Since Musk’s Twitter acquisition in spring 2022, used Tesla prices have dropped 57% (twice the decline of other EVs).
-As of March 2024, the average used Tesla price is $30,000—$10,000 lower than other EVs.
Reasons for the price drop:
-Increased supply due to more Tesla owners selling their cars.
-Declining consumer demand.
-Tesla’s frequent new car price cuts further devaluing used Teslas.
Opinion
The sharp drop in used Tesla prices is not just a market fluctuation but a result of declining consumer confidence, Musk’s political moves, and Tesla’s pricing strategy. As Tesla continues to cut new car prices in an effort to boost sales, downward pressure on used Tesla prices is intensifying.
Core Sell Point
Tesla’s declining new and used car prices reflect structural issues—oversupply, weakening demand, and a negative feedback loop driven by continuous new car price reductions.
Tesla’s Popularity Declining Among Americans—Reflected in Used Car Prices
Tesla’s waning popularity among Americans is not only affecting new car sales but is also evident in used car price data.
Since last October, right before the presidential election—when Tesla CEO Elon Musk first appeared at a Donald Trump rally—the average price of used Teslas on the car research and shopping platform CarGurus has dropped by approximately 7%. This decline is more than three times the drop seen in other used EVs during the same period.
Looking further back, since Musk initiated his Twitter acquisition in the spring of 2022—a time that coincides with his increasing public alignment with right-wing politics—used Tesla prices have fallen by about 57%. This drop is more than twice as steep as that of other non-Tesla vehicles.
As of mid-March, the average selling price of a used Tesla stands at around $30,000, which is approximately $10,000 lower than the average price of other electric vehicles.
This price decline appears to be driven by a combination of factors:
More owners are trying to sell their Teslas, increasing supply in the market.
Consumer demand for Teslas has weakened.
Used car prices partially reflect new car pricing, and Tesla has continuously lowered new car prices in an (unsuccessful) attempt to boost sales.
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