Tesla Trade-Ins Are Up 250% — Is Now the Time To Buy a Tesla EV?
Written by
John Csiszar
Edited by
Cory Dudak
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Tesla seems like it’s always in the news. Whether it’s the EV-maker’s ground-breaking electric vehicle technology, its push into autonomous vehicles like the robotaxi, or simply the mercurial antics of its CEO Elon Musk, there’s always something to talk about when it comes to Tesla.
Unfortunately for owners of both Tesla stock and its vehicles, consumer sentiment has definitely turned against the company. In March 2025, trade-ins of Tesla vehicles were up an astonishing 250% on a year-over-year basis, according to Edmunds data cited by CBS News, marking an exceptional reversal of fortune for a once-beloved brand. But what does this mean for potential buyers?
Is now the time to buy a Tesla EV, or are there too many dark clouds on the horizon? Here’s all that you’ll need to know to make an informed decision.
Why Are So Many Tesla Owners Trading in Their EVs?
The most obvious recent answer as to why Tesla trade-ins are through the roof is a political one. Over the past year or so, Musk has closely aligned himself with Donald Trump and became a vocal supporter.
After Trump was re-elected, Musk was put in charge of the Department of Government Efficiency, and his dramatic cuts to “waste” in the government — which included tens of thousands of jobs — have riled up a large segment of the electorate.
Many of these owners are now putting their cars up for sale, no longer wishing to be associated with the brand. One owner even shared with CBS News that he felt other drivers were now “more aggressive” toward him on the road, compelling him to reconsider ownership of his Tesla.
However, the reasons for the spike in sales go beyond mere politics. The truth is that while Tesla still produces an innovative product, it’s no longer the only game in town. As Edmunds put it, “Five years ago, legacy automakers just didn’t have vehicles that could compete with Teslas,” but that’s changing. While the company still holds a 44% market share in EVs, that’s a far cry from the 80%-plus the company used to have. More choices in the EV market has contributed to higher numbers of Teslas being traded in for other vehicles.
Another reason why some Tesla owners are offloading their vehicles is their high depreciation. According to Kelley Blue Book, Tesla’s used car prices are falling nearly three times as fast as the overall used car market. As an example, the 2023 Tesla Model Y has already fallen in value by 38% in just two years.
Is This an Opportunity for Buyers?
From a purely economic standpoint, when demand for a product falls at the same time supply is increasing, prices drop. This is certainly playing out across America, as it’s not too hard to find a bargain price for a used Tesla if you shop around.
If you’ve always wanted a Tesla but were deterred by the high prices, this could be a great opportunity. Rather than buying a new Model Y and seeing its value plummet by nearly 40% in two years, you could be on the buying side of that transaction, picking up a lightly used EV for 62% of its original value.
The Bottom Line
If you’re looking to pick up a cutting-edge electric vehicle for a bargain price, this could be your chance. With the brand currently having image issues, supply is up, demand is down and prices are low in the used vehicle market. But there’s a lot of baggage that goes along with being a Tesla owner in the current environment.
Tesla vehicles, both on and off dealer lots, have been vandalized and even fire-bombed by protesters, so there’s some small level of risk involved in owning one.
On the non-political front, you’ll still have to deal with depreciation and long-term resale value concerns. The long-term health of Tesla batteries can also be a worry. Of course, these are the types of used vehicle issues that plague many EVs — not just Teslas.
The bottom line is used Teslas are getting cheaper for a reason. But if you understand why and still have the desire to buy, prices for used Teslas are at an attractive level.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
Sources
- CBS News, “Record number of California residents are trading in Teslas, new data show.”
- CBS News, “Tesla trade-in surge | On Your Side.” (video)
- Edmunds, “More Than Half of Teslas Are Being Traded In for Gas Cars.”
- Kelley Blue Book, “2023 Tesla Model Y Depreciation.”
