Used Tesla Prices Surge Despite U.S. EV Tax Credit Cuts

The U.S. eliminated the $7,500 federal tax credit for electric vehicles effective September 30, 2023, leading to a decline in new vehicle sales—Tesla’s U.S. sales in November dropped by more than 20% year-over-year. However, the used-car market showed an unusual trend: according to a market research firm’s analysis of 1.7 million used vehicles, the average price of used Teslas rose 4.3% after September, increasing from $30,040 to $31,329. This surge helped drive a 3.5% increase in overall used EV prices in the U.S. during the same period. Yet, excluding Tesla and the Porsche Taycan, prices of used EVs from other brands actually fell by 3.6%, highlighting Tesla’s significant influence on market dynamics.