Used Tesla Model Y prices plummet amid record trade-ins

In the United States, the market for used Tesla Model Ys has experienced a substantial decline in prices, resulting from a surge in trade-ins. These trade-ins have been influenced by the arrival of a new Model Y variant, the 2026 'Juniper' model, which recently went on sale as a fully-loaded edition priced at $60,000, along with a more affordable All-Wheel Drive model at $48,990. Vehicle owners who have felt disillusioned by the controversy surrounding Tesla and its CEO, Elon Musk, and their political associations have also contributed to this market shift. The impact is evident as statistics indicate a 2.72% decrease in used Model Y prices over the last three months and a notable 12.69% drop over the past year, according to data compiled by CarGurus. Additionally, various online marketplaces such as CarGurus and Autotrader, as well as Tesla's own used vehicle sales platform, are witnessing an influx of listings for used Models Ys, many of which are available below the $25,000 price threshold. This is significant as it opens up eligibility for potential tax credits. A Reuters report also highlights a record number of Tesla trades, with vehicles from model years 2017 or newer making up 1.4% of all vehicles traded in, up from 0.4% the previous March. The reasons cited for this increase predominantly revolve around dissatisfaction among Tesla owners stemming from Elon Musk’s controversial involvement as an adviser during the Trump administration. As existing owners trade in their vehicles, the resulting supply increase is helping to drive prices downward. Thus, Tesla's market dynamics are being reshaped by a combination of new vehicle launches, customer loyalty shifts, and political controversies, creating both challenges and opportunities within the used car market. As the new Model Y finds its way to consumers, these trends may well continue, leading to further price adjustments and market volatility.