Recent Tesla owners are quite in a pickle now. The huge discounts applied by the EV maker for brand-new models made an impact on the used car market and, arguably, on the psyche of those who bought one last year. But many Carvana sellers might have missed the memo. Here’s what’s going on.
Last week, Tesla decided to give Americans, Canadians, and Europeans another reason to be interested in its cars. Prices were slashed across the board. In the U.S., the biggest discount of $21,000 was applied to the Model S Plaid. But the manufacturer’s most popular models are the Model 3 and the Model Y. So, they got cheaper too.
Currently, a brand-new single-motor Tesla Model 3 Rear-Wheel Drive costs $43,990, while the Performance version has a starting price of $53,990. The dual-motor Model Y Long Range retails for $52,990, while its sportier relative – the Model Y Performance – goes for $56,990.
For now, most of Tesla’s vehicles qualify for the updated EV tax credit, which can give qualifying Americans the chance to obtain a federal fiscal advantage of $7,500 in 2024. This tells us that a Model Y Long Range with no other options added to it can cost $45,490. Now that’s a very attractive price point for an all-electric crossover SUV that’s known for being efficient, comes with lots of interesting technologies, and guaranteed access to one of the best charging networks in America. And we didn't even touch on what many states and relevant private entities offer as incentives or rebates.
But that's not all of it! Prospective buyers don’t even have to wait very long. According to Tesla’s estimates, deliveries can happen in a couple of days or a few weeks at the most. Right now, the automaker says your next Model Y or Model 3 can reach you between what's left of January and March.
So, why are used Model Ys still more expensive on platforms like Carvana? For example, we found a 30,000-mile (48,280-kilometer) 2021 Tesla Model Y Long Range for which the owner wants $54,990. But it gets even more confusing as another Tesla Model Y, this time a Standard Range with over 31,000 mi (49,890 km) on the odometer, is listed for $54,990! That's almost $10,000 more than a better, newer, never-driven Model Y.
Photo: Carvana
And it doesn’t even stop here. A barely-driven 2022 Tesla Model Y is trying to find a new home for a price tag of $58,590, as you'll see in this article's photo gallery. Who will buy these cars when you can shop for a brand-new one for a lot less? Well, that’s for the market to decide. Because there are a lot more EVs listed on the platform for - what can now be safely called - ridiculous prices. They're just too expensive.
This whole thing shows us that Tesla took everyone by surprise when it decided to make its entire lineup considerably cheaper in 2023. Some may have learned about it and decided to either buy one from Tesla or look for deals on used EVs online, while existing owners might still try to haggle with those who did not hear about the price cuts.
Either way, the used car market is slowly but surely cooling off. For Tesla models, however, it started in a big way. And it may continue in this direction as more and more people realize that a Model 3 or a Model Y are nothing more than commuting appliances. The much-touted Full Self-Driving Beta (FSD Beta) is not ready and there isn't much attractiveness or excitement to be found for an EV built to do exactly what any other basic car has to. This might change when we start looking at the Model S Plaid or the Model X with its falcon-wing doors.
Plus, Elon Musk’s Twitter adventure is not helping Tesla out at all. Some customers and investors alike may start actively disliking the CEO, which will finally end in fewer retail investments and acquisitions. And then, there's the prospect of having the updated Model 3 and Model Y come out, which would only put more pressure on the used Tesla market.
However, this is great news for Americans who long waited for a somewhat reliable and fairly-priced EV. It's happening!
Car shows on TV and his father's Fiat Tempra may have been Florin's early influences, but nowadays he favors different things, like the power of an F-150 Raptor. He'll never be able to ignore the shape of a Ferrari though, especially a yellow one. Full profile
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