- Tesla’s used values have plummeted as much as $20,000 since 2023.
- Used prices are falling, in part, because of a flooded market.
- Fewer people are buying used Teslas because of CEO Elon Musk’s recent actions and strong competition in the EV segment.
If you’re like me and happened to buy a new Tesla in the last couple of years, you might not want to look up its value. It turns out that Teslas are holding value about as well as a rock in water—they’re skinking.
New data from CarGurus shows that the average price of the best-selling Tesla Model Y has dropped by $6,000 since March 2024. Not enough for you? It gets worse looking back to 2023 with a staggering drop of $20,000. No, that’s not a typo. In just two years, a used Tesla went from being an overpriced flex to an absolute bargain-bin deal.
Photo by: Tesla
What’s Causing Tesla Prices To Plummet?
There are a few things driving the crash in used Tesla values:
Tesla’s non-stop price cuts on new cars: Granted, this has been relatively static for the Model 3 and Y over the last year, but prior to that, a community-sourced Google Sheet tracked the varying price fluctuations.
A flood of used Teslas in the market: Off-lease cars, rental agencies writing off their losses and consumers ditching their Teslas as fast as possible means that there are a ton of Tesla-branded cars on the market today.
Musk Fatigue: By now, you probably know what that means. More on this in a minute.
As a result of all this, the market is falling fast.
Tesla Model Y average used selling price (via Forbes, GarGurus)
Photo by: CarGurus
To be clear, this doesn’t discount the Model Y’s popularity. It has been the best-selling car in the world, and eventually, all of those new EVs will end up in either one of two places—the scrap yard, or the hands of a second-hand buyer. But it rubs a bit of salt in the wound for new buyers who may have paid $60,000 for a Model Y in 2023 and are now watching its value plummet to barely more than a new Honda Accord Hybrid.
The Silver Lining: Cheap, Used EVs For Everyone!
But, hey, we can’t look at this like it’s all bad news, right?
If you’ve been eyeing up a new EV but couldn’t justify the price, now’s your chance. Used vehicles across Tesla’s lineup are basically on a fire sale right now. For example, a 2020 Model 3 SR AWD can be had for $12,000. If that isn’t an insane price, I don’t know what is.
Basically, if you don’t care about Tesla’s Musk-shaped baggage, these cars are a great buy for anybody looking to transition from a gas-powered car to an EV. Tesla still has the advantage of a strong charging network and a software experience that other automakers are still trying to match.
The Problem: Tesla’s Brand Image Means Nobody Wants Them, Even Used
Photo by: InsideEVs
In case you somehow missed the last couple of months, Tesla is having a bit of a CEO problem right now. Then again, so is Nissan, but Tesla’s situation is a bit different, and by that, I mean worse. Elon Musk is a bit of a PR nightmare right now. His political dealings have riled up folks around the world and have helped persuade owners to dump their cars at an alarming rate (which, honestly, could have helped chip away at used values by flooding the market).
This isn’t conjecture. Davide Greene, an analyst at Cars.com, told Forbes that searches for used Teslas have dropped 7% year-over-year. Meanwhile, searches for other EVs have jumped 28% during the same time. Teslas are also spending more time on dealer lots. Time-to-turn has increased as well, according to Greene, indicating that Tesla’s dominance in the EV market is indeed being tested.
“Despite Tesla’s continued reputation for competitive pricing and strong lease deals—especially for the Model 3 and Model Y—the brand is facing mounting pressure in an increasingly competitive EV landscape,” Greene told Forbes. “The number of used EV models on the market has spiked, growing 31% year over year, with 76 different models available as of February 2025, compared to just 58 a year prior. This expansion gives consumers more choices beyond Tesla, including fresh designs from other brands.”
For many former Tesla fans, the brand just isn’t about EVs anymore. It’s more tied to Musk’s politics, social media rants, and controversies. Even people who love Teslas are shifting their interest toward Hyundai, Kia, Ford and GM rather than buying into The Elon Show and that isn’t good news for Telsa.
So Should You Buy One?
Here’s the skinny: if you’ve been waiting for an affordable EV with good range, a used Tesla might be the best deal in the world right now. That crown used to go to the Chevy Bolt, but a used Tesla Model 3 or Model Y at the same price is kind of hard to beat.
Now, if you’re hoping that your used Tesla will hold its value—good luck. As anyone who bought a Tesla on Elon Musk’s promise of it being an appreciating asset has learned, that simply isn’t the case. If you happen to get in close to the ground, though (we’re talking about those sub-$20,000 used cars), there doesn’t seem to be too much of a short-term loss given that the original owner ate most of that depreciation.
