According to a new analysis from auto research site iSeeCars, Tesla's used car prices fell 10.1 percent year over year in March, the largest dip among the 10 auto brands that witnessed declining values in cars that were one to five years old.
Tesla's decline was greater than that of two of Stellantis' most troubled brands, Maserati (8.0 percent) and Chrysler (8.9 percent).
When looking more closely at the top 20 vehicles with the biggest price reductions, Tesla's EVs were clearly in the mix. The Model S sedan had the largest year-over-year price decline, dropping 17.2%, or almost $10,000, from the previous year. The Model S, Model Y, Model 3, and Model X were the four Teslas that made the list.
The Model 3 car dropped 10.9% to $26,084, while Tesla's best-selling Model Y SUV dropped 13.1% to an average price of $30,611.
For the brand, declining resale values have started to happen more frequently. "For more than two years, Tesla prices have been declining in both the new and used car markets," iSeeCars executive analyst Karl Brauer stated.
Price reductions for new Teslas had an instant effect on used Teslas, causing their prices to drop quickly.
Tesla's aim to sustain sales growth was the driving force behind the new car price reductions, but when the carmaker experienced its first annual sales decrease last year, that approach failed.
Since buyers were obtaining greater value by purchasing new, price reductions for new Tesla EVs over the years have had a significant impact on the used car market. Additionally, it affected fleet companies like rental vehicle networks, which suffered significant depreciation losses to their EV inventory, and crushed current Tesla owners who were receiving much less at trade-in, even while it increased sales of new cars.
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Sales in the US and outside have been negatively harmed by Elon Musk's right-wing political actions, which have also damaged Tesla's reputation. According to S&P Global Mobility, Tesla car registrations in the US fell 11% in January over the same month last year. With 42.5% of the US EV market, Tesla still holds the top rank, but this is a staggering 12% decline from the previous year.