Tesla Used Car Prices Are Falling Rapidly – What’s Behind the Decline?

Used Tesla prices have dropped three times faster than the market, with Cybertruck leading the decline. CarGurus data reveals key trends—find out what’s driving the price drop.

Used Tesla prices are plummeting three times faster than the rest of the used car market, raising serious concerns about the company’s position. According to CarGurus data, the average price of a used Tesla has dropped by 3.7% over the past three months and 7.26% over the past year. By contrast, the overall used car market has only seen a 1.12% decline in three months and a 2.68% drop over the year, putting Tesla among the biggest losers.

The Cybertruck has been hit hardest, with its price plunging 11.46% in just three months and a staggering 58.28% over the past year. However, this decline is partially misleading—early buyers tried flipping their Cybertrucks for profit, inflating its initial resale prices. Now, the market has adjusted.

More concerning is the situation with Tesla’s key models—the Model 3 and Model Y. Over the past three months, their prices have fallen by 4.19% and 2.9%, respectively. In comparison, the only Tesla model to show any price increase was the Model X (+1.29% in the last month), but even it has lost 8.8% in value over the past year.

Several factors are driving these price drops. First, a growing number of Tesla owners are selling off their vehicles, eager to distance themselves from the brand amid ongoing controversies surrounding the company and CEO Elon Musk. Second, an increasing supply of used Teslas naturally pushes prices downward.

Not long ago, Musk promised that Tesla vehicles would "appreciate in value" over time and become "assets that generate profit." In reality, they are depreciating faster than most other cars on the market. The question now is whether this trend will stabilize—or if Tesla’s used car prices have even further to fall.

Source: electrek.co