Now that Tesla's new car prices are much lower, the same is becoming true of used Tesla prices. Just a quick look at the online car sales website Carmax shows a 57 percent drop in Tesla inventory over a 24-hour period.
When Tesla first dropped its prices in the US late last year, it excited many folks, but it also upset others. When a car's starting price drops notably, current owners' cars lose resale value. In addition, car prices drop on the used market.
Not long ago, some of Tesla's vehicles were selling on the used market for more than they cost new, and people were buying them. This was because there was plenty of demand for the EVs, and the waiting list was long. People ordering a new Tesla model would have to wait many months, and sometimes even as much as a year or more to take delivery, so a pre-owned model made sense.
As part of an additional incentive offering, Tesla dropped its prices a second time at the end of last year, but the most notable drop came just last week. The company wasn't simply offering an end-of-year incentive, but rather, adjusting its prices down significantly. Tesla says the price cuts are due in part to the improving economic situation. In China, Tesla pointed to manufacturing efficiencies and lower costs as reasons it can now offer its cars at lower prices.
At any rate, CarDealerhipGuy on Twitter aims to provide "Unbiased & transparent insights into the car business." His Twitter account was the one that recently warned people of a potential future financial crisis that may come from the current situation with car loans. CarDealershipGuy was watching online Tesla inventory after the electric automaker lowered its prices, and he noted that Carmax sold 57 percent of its Tesla inventory in 24 hours.
He continued tracking and found that the number of used Teslas dropped to 275, then 243, and finally 211.
Today, at the time of writing, Carmax has only 170 Tesla models left in stock. We imagine the drop is notable at various rivals of the online car sales company, so long as they all dropped their prices accordingly.
Are you considering buying a Tesla after the price cuts? Will you be able to take advantage of the revamped US federal EV tax credit? Would you consider a used model instead? Please leave us your thoughts in the comment section below.