Tesla Vehicle Values Plummet in Used Car Market
Used Tesla models suffered significant value drops over the past year, according to recent analysis. Several factors are affecting these declines, potentially impacting the electric vehicle market overall.
Model S Leads Depreciation
A new study by Iseecars.com indicates that the Model S experienced the most significant depreciation in the used car market. Specifically, the value of this Tesla model diminished considerably in May 2025 compared to the previous year.
The Model S saw an average decrease of $8,837, representing a 16% loss. The average used Model S sold for $46,503, while a new one cost $81,380, including shipping.
Model Y and Model 3 Values Fall
Following the Model S, the Model Y was the second-most depreciated Tesla vehicle. Its value decreased by 14.2%, a $4,945 reduction compared to the previous year. The average price of a used Model Y reached $29,789, while a new one had a starting price of $46,380.
The Model 3 took the fifth spot on the list, experiencing a 10.8% decrease, or $3,078. The average used Model 3 price was $25,361, whereas a new, rear-wheel drive version had a cost of $43,880.
Model X Also on the List
Closing the top 10, the Model X had an 8.9% depreciation, equal to a $5,292 decrease. The average price for the luxury crossover model was $54,004. Purchasing a new one would cost at least $83,600.
“There are several factors that affect the value of a used car, but it seems to be an electric vehicle and wearing a ‘Tesla’ brand is currently a double negative,” stated analyst Karl Brauer from Iseecars.
According to a report by Cox Automotive, the average price for a used EV in May 2024 was $36,858, a decrease of 22.2% compared to the same period in 2023 (Cox Automotive).
Factors Influencing Value
The research analyzed sales data for used cars from 2024 and 2025. It focused on vehicles aged one to five years old, highlighting the specific depreciation rates for different Tesla models.
The analysis reveals a pattern of value decline across multiple Tesla models, raising questions regarding the brand’s long-term appeal in the used car market. This depreciation can affect both consumers and the wider automotive industry.
