The value of a used Tesla fell on average by more than €1,000 in the first half of January, new figures show.
According to data from the used car platform, between January 1 and 18, the average list price of a Tesla fell from $36,410 to $35,370. AutoGurus.
During the same period, the company’s share price also fell by more than 15 percent.
To add fuel to the fire, Hertz revealed in a company last week that it would sell tens of thousands of its electric cars in a “fire sale.”
Analysts have suggested The increase in supply of deeply discounted Teslas is likely to resonate in the already struggling and relatively small second-hand market.
The value of a used Tesla fell further in January, with an average drop of more than $1,000 in just 18 days
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Last week it also emerged that Tesla has been dumped by another rental giant Sixt, which will instead buy 250,000 Jeeps, Chryslers and Dodges. It is not clear whether Sixt will also sell the old Teslas.
Rental companies blame low demand for electric vehicles from customers who don’t want the hassle of finding charging stations on road trips and are concerned about range.
While the value of used EVs from all manufacturers is falling, Teslas are being hit the hardest.
In September, the typical list price of a used Tesla fell below the cost of the average EV for the first time, CarGurus said.
Used electric vehicles fell 22 percent between October 2022 and October 2023, while the overall used car market fell only 3 percent.
“EV prices overall have fallen quite a bit over the past year and a half,” CarGurus says Director of Industry Analysis Kevin Roberts.
He explained the pronounced impact on Teslas and pointed to the company’s aggressive price cuts on new cars.
As the EV market became more competitive, Tesla opted to reduce its relatively wide profit margin to gain market share, Roberts said.
Those price cuts also meant Tesla could sell cars for less than the threshold amount for buyers to claim federal tax credits — a major incentive for Americans to adopt electric cars.
Hertz CEO Stephen Scherr mentioned the declining value of its EV inventory during the company’s third-quarter earnings call in October.
“The drop in the recommended retail price for electric cars over the course of 2023, mainly caused by Tesla, has reduced the fair market value of our electric cars compared to last year, so that a salvage entails a greater loss and therefore a greater burden.” , he says. said.
Nearly all of the more than 500 used electric vehicles the company had for sale Wednesday were Teslas, with some Model 3s on offer for as little as $21,000.
That’s half the price of a new car and up to $10,000 less than cars with similar mileage from other sellers.
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Hertz may have chosen to sell many of its electric vehicles at significant discounts due to their high mileage and visible damage to their bodywork
Analysts suggest that Hertz may have chosen to sell many of its electric vehicles at significant discounts due to their high mileage and visible damage to their bodywork.
“I have rented several Model 3s from Hertz over the past six months and my observation is that some of them are quite rough cosmetically,” Scott Case, CEO of EV research firm Recurrent Auto, told Reuters.
A large number of Chevrolet Bolt EVs also appeared on the market Hertz used cars for sale website this week. They started at $20,000.
Sales of the vehicles began last month and more models will be added over the course of the year, the company said.
But according to Roberts, it may not be all bad for Tesla and electric vehicles in general.
“Last year saw sales of more than a million new EVs for the first time, so demand for EVs continues to grow,” he said.
And as the price continues to drop, we may eventually reach a point where more consumers are much more interested.”