Tesla Begins to Sell Used Models at Its Website

One of Tesla Inc.’s (NASDAQ: TSLA) most significant challenges is the huge market for used models of its cars. The prices of these have dropped sharply in the past several months, which has probably hurt demand for new Tesla vehicles. The electric vehicle (EV) maker has tried to flank this by offering used Teslas on its website.

According to iSeeCars, the price of used Teslas fell 10.1% year over year in March, bringing the total down by $3,541 to $31,421. No other major brand saw the price of its used vehicles decline as much. Used car prices across the United States rose 1% in March, including gasoline-powered cars and EVs.

The number of used Teslas in the U.S. is large because some people have sold theirs due to the controversies surrounding CEO Elon Musk and his efforts to reduce federal government spending.

However, Business Insider points out that, “Used Tesla prices have been in a freefall for the past few years, with the average price of a used Tesla now $10,000 less than that of a non-Tesla electric car, according to data from the dealership website CarGurus.”

Tesla has an entire website section showing an inventory of used models. It shows the name of each vehicle for sale, its mileage, and its model year. It offers these for lease or sale, and it also shows where each car is located.

Tesla’s sale of used cars online is up against stiff competition. Legacy car companies often have used Teslas on their lots. Online car companies Autotrader, CarMax, Carvana, and Vroom also have extensive inventories of used Teslas. These can be delivered directly to people’s homes.

It is hard to say whether Tesla is competing with itself by offering used cars at Tesla.com. It may want to capture part of a market that will exist with or without that inventory.

Prediction: 1 Electric Vehicle Stock Poised to Overtake Tesla by 2030

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