Plunging used Tesla prices? This used EV dealer isn't blaming Musk's politics

Average pricing for Tesla $TSLA ( ▲ 6.94% ) vehicles continues to drop, as the brand tries to offset its declining new car sales numbers in the thick of several market challenges—but the figures don't tell the entire story.

First things first: Reports of the electric carmaker's sales decline—amid all the drama surrounding Tesla CEO Elon Musk's ties to the Department Of Government Efficiency (DOGE)—has been all the news in recent months, as the average vehicle pricing for key models continues to drop, per CarGurus.

• Average pricing for the Model S dropped -1.99% over the last 30 days; -5.58% over the last 90 days; and -4.62% year over year.

• The Model 3's average pricing has lowered -1.23% over the last 30 days; -1.66% over the last 90 days; and -10.65% year over year.

• The average pricing for the Tesla Cybertruck—which has struggled in the market following its big rollout launch —dropped -4.58% the 30 days; -14.11% for the last 90 days; and -48.24% year over year.

But is the steep decline directly tied to Musk's role at DOGE? Too many individual, anecdotal cases, so we can't say for sure. The decline in pricing is probably more likely part of a general correction in used EV prices across the board that's been happening for a while.

Between the lines: According to Cars.com data, the average age of used Teslas is 4.3 years with 44,000 miles on the odometer, compared to the average age of non-Tesla used EVs, which is 2.8 years old with 21,000 miles. So, it makes sense that used Tesla price drops are outpacing many non-Tesla EVs.

On top of that, Tesla's used inventory grew 20% year over year in Q1 2025 alone. Sure, Edmunds notes that Tesla trade-ins are up, but this increase in supply could also be driven by the cycle of off-lease returns. 

More supply = decrease in pricing. It’s simple supply and demand. 

Yet, used Teslas are still proving to be highly viable for some retailers —as Alex Lawrence, CEO of EV Auto in Utah, told CDG News, when discussing his record sales during what industry experts consider peak car-buying season. March and April traditionally represent some of the strongest months for used vehicle sales, and Lawrence has been capitalizing on these falling prices to drive his business forward.

• In April, EV Auto—which sells hundreds of Tesla models a month—sold 60 more Tesla vehicles than it did in March and the store is on track to continue its sales trend in May.

• Lawrence just opened its second location about two weeks ago and that location sold five models on its first day—and seven cars on its second day of operations.

• The Model 3—which is eligible for the $4,000 federal tax credit, is EV Auto's top seller, followed by Model Ys that sell extremely well when they qualify for the credit.

Bottom line: While headlines focus on Musk's political entanglements and dramatic price drops, the actual market impact depends entirely on which side of the transaction you're on. For now, as one door closes for some Tesla stakeholders, another opens for others.

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