Tesla Model X, S and Y Have Lost More Value Than All Other Used Vehicles: Here’s Why
Written by
Tobi Opeyemi Amure
Edited by
Levi Leidy
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Used car values for Tesla’s Model X, S and Y have plummeted over the last year, with losses outpacing every other major vehicle segment. According to iSeeCars, the average price drop for these Tesla models exceeded 13%, and for the Model X and S, the dip was more than 15% in just 12 months. Even as gas vehicles experienced a 5.2% increase in value, Teslas sharply bucked the trend, highlighting a substantial shift for electric vehicle (EV) owners.
According to Lauren Fix, expert at Car Coach Reports, aggressive price cuts and heavy EV competition are the primary reasons behind such significant Tesla depreciation. Lauren believes Tesla’s frequent markdowns act as instant hits to used models’ worth, with new price tags sparking losses in resale value. She explained that the fading allure of federal incentives and declining market confidence only add pressure, pushing values ever lower compared to earlier years.
Why Has Tesla Depreciated So Far and Fast?
Fix said multiple variables have converged, causing Tesla used car prices to drop further than all other electric or gas vehicles recently. Heavy price reductions on new Teslas have led to immediate and lasting impacts, dragging down older models on dealer lots. Fix added that rivals such as Lucid and Hyundai have steadily attracted more buyers, eroding Tesla’s exclusive appeal and shrinking their resale market interest.
According to Fix, worries about technology quickly becoming outdated have started to play a big role, pushing consumers away from older Tesla models. Owners are finding that rapid advances in batteries and features make holding onto a Model X, S or Y feel riskier, especially as their warranties expire. Fix also explained that Elon Musk’s increasingly divisive approach to public discourse and the resulting brand sentiment have also contributed to weakening resale values.
Tesla’s Pricing and Market Dynamics: A Perfect Storm
Tesla’s strategy of aggressive and frequent price cuts has created headaches for anyone planning to resell their Model X, S or Y in 2025. Fix notes that as soon as new Tesla models are made cheaper, the values of existing vehicles are undercut instantly, causing owners to reevaluate their options. iSeeCars reported that the value of the Model S went down by $8,768 (15.8%) and the Model X lost $9,544 (15.5%) in a single year, with the Model Y also dropping in value by $4,637 or 13.6%.
Inventory of used Teslas continues to grow, as owners sell sooner while demand cools, putting further downward pressure on prices. Lauren Fix observed that the market is flooded with high-mileage models, adding to oversupply, which only serves to drive values even lower. She adds that new vehicles like the Cybertruck and better battery tech have contributed to the sense that last year’s Teslas now feel outdated more quickly.
Broader EV Trends and Government Policy Aftershocks
Competing EV brands, predominantly BYD, are introducing affordable electric cars at record paces, leaving less room for older Teslas in a crowded market. Fix explained that we’re seeing widespread advancements in battery technology, making newer rivals more attractive and cost-efficient.
“Solid-state batteries offering longer range and faster charging have come to market, which means older Teslas look less appealing every year,” Fix added.
The loss of the $4,000 used EV federal tax credit, ending on Sept. 30, 2025, will likely spur even deeper declines in used Tesla values as government support disappears. The Big Beautiful Bill’s sunset of the $7,500 EV subsidy for new vehicles, scheduled for the same date, will similarly push more buyers toward other models — potentially gas-powered vehicles — further increasing supply and undermining prices.
With these incentives set to expire, experts urge buyers to consider their options carefully, weighing short-term savings on used Teslas against new risks. Fix said, “I don’t like used EVs as they have shortened battery life, shorter range and high insurance rates. “Consider all factors before buying one,” she advised, as waiting or looking at other brands could prove financially safer at this time.
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