The pre-owned Tesla market is full of listings, jumping by 33% since January 2025. Tesla listings went from 8,500 at the start of the year to 11,515 in mid-March, reports Cox Automotive data provided by Autotrader.
While listings of used EVs overall year-to-date had grown by 27%, Tesla accounted for used EV listings gaining just one percentage point to 40%.
Elon Musk's Actions Affecting Tesla's Brand
Stephanie Valdez Streaty, industry insights director at Cox Automotive, posited that this bubble is partially attributed to more products being available. Yet, she also added that Tesla's increasing problems are more than just supply and demand, according to Business Insider.
Experts contend that the unpopular actions of CEO Elon Musk have undeniably impacted the public perception and performance of Tesla. Streaty indicated that the conduct and relationships of Musk have affected consumer attitudes toward the brand, prompting a critical crossroads for Tesla.
"It's undeniable that Elon Musk is an influential factor whose actions are impacting the brand's image and sales, and only time will tell if Tesla can successfully navigate this critical juncture and find a new engine for growth," Streaty said.
Tesla Vandalism Issue Amid Political Backlash
Over the past few months, Tesla stores and cars throughout the United States have been victims of assault and destruction. This outrage seems to be the result of Musk's connection with the White House DOGE office, which has been the cause of political debate.
Because of this, the FBI has initiated a task force to examine and deal with these acts, terming them "acts of violence, vandalism, and domestic terrorism."
Used Tesla Prices Plummet as Demand Drops
As Tesla owners scramble to offload their EVs, they are getting lower returns than anticipated. Data from CarGurus indicates that the average value of a used Tesla is currently $10,000 lower than an equivalent non-Tesla electric car. This decline in resale value implies that demand for used Teslas has declined, possibly as a result of various factors including market saturation, negative publicity, and rising competition.
The EV Market is Becoming More Competitive
Since Tesla brought the EV market into the mainstream in 2020, the company has been confronted with mounting challenges. The erstwhile dominant EV manufacturer is now struggling with rising competition, an outdated product lineup, and economic forces impacting consumer spending power.
Controversies over Elon Musk have also made it more difficult for Tesla to navigate the market.
Streaty cautioned that if Tesla doesn't shift gears strategically to roll out new products with wider consumer appeal, the company's peak as an industry leader could be in the past.
Former Tesla Owners Regret Brand Association
Several previous Tesla owners have expressed discontent with the company because of Musk's politics. One recent case is that of Scott Oran, a Boston real estate developer who sold his Model 3 after Musk's public behavior made him "embarrassed" to own the brand.
As for one Reddit user: "There's never been a better time to buy a used EV. There's so many to pick from of all sizes and levels of luxury and performance—oftentimes half the price of new!"
