Recently, the average cost of a used Tesla has dropped below that of the general US used car market, marking a significant change for Elon Musk’s electric vehicle company.
Data from Cargurus reveals that the average price for a used Tesla is around $27,814, while the overall average for used cars sits at $28,039. This trend could raise some eyebrows considering that, overall, used car prices have seen a 1.22% increase year-on-year, whereas Tesla’s averaged price has decreased by 4.59% during the same timeframe.
This situation contrasts with last year, when Tesla’s resale value declined alongside the broader market. Even as the used vehicle market began to recover in March 2025, Tesla continued to lose value.
Breaking it down by models, every Tesla is now being sold for less than it was a year ago. The CyberTruck has experienced the largest drop, with prices down over 30% to an average of $83,963, though it has seen some gains recently. The Model S is down 22.61%, priced at $26,534, while the Model X dropped 16.8% to $37,747. Meanwhile, the more affordable Model 3 costs about $23,318, which is an 8.04% decrease year-on-year, and the bestselling Model Y has also seen a drop of nearly 12%, now averaging $29,216.
This decline in the Model Y’s value has significantly impacted the overall average price for the brand, even as some other models have shown slight rebounds.
Reports suggest that an increased supply of used Teslas is putting pressure on prices. Many Tesla owners are trading in their vehicles for other brands, which increases the availability and forces sellers to reduce costs. It’s quite fascinating to think that a brand known for its innovation and high-tech vehicles is now struggling with resale values.
In a twist of events, Tesla’s CEO Elon Musk had a complicated relationship with former President Trump. Their dynamic shifted from hostility to a political alliance but fell apart in 2025 due to various conflicts affecting Musk’s business. It’s a tangled web, right?
Interestingly, while the CyberTruck and Model 3 have experienced minor price increases lately, there’s no strong evidence suggesting a full recovery is on the horizon. Prices may face ongoing pressure in the upcoming months, especially as popular models continue to drop, and more used Teslas enter the market.
In terms of overall sales, Tesla has seen a decline in major markets during 2025, particularly a 9% drop in the US during the first quarter, which widened to 11% in the first half of the year. Globally, deliveries fell to around 720,803 vehicles in the first half, a 14% decline compared to 2024, with notable drops in Europe and an 8% decrease in China.
Analysts now project Tesla will deliver between 1.35 million and 1.66 million vehicles worldwide in 2025, a significant reduction from the 1.79 million sold last year.
This post awaits a comment from Tesla.
