Why Are Used Tesla and Other EV Values Dropping So Fast?
If you’ve been eyeing a used Tesla or another electric vehicle, you’ve probably noticed something odd: prices are tumbling. Not just a little, either. According to a recent study by iSeeCars, five out of the top ten used cars that lost the most value over the past year are EVs, with Teslas leading the pack. The Model S, for example, shed nearly 16 percent of its value—about $8,800—since last June. That’s a hefty chunk of change for a car that’s still considered cutting-edge.
So, what’s behind this sudden depreciation? For starters, the used EV market is still finding its footing. While EVs make up only 3.3 percent of the 1- to 5-year-old used car market, they’re overrepresented among the biggest losers in value. Tesla, which still holds over 40 percent of the US EV market, saw demand drop 11 percent in the first half of 2025. That’s not just a blip—it’s a sign that the tide might be turning.
Which Models Are Losing the Most, and By How Much?
Let’s get specific. The top three spots for value loss go to Tesla’s Model S, Model X, and Model Y. The Model S dropped to an average price of $46,700, down 15.8 percent from last year. The Model X lost even more in dollar terms—$9,500—but because of its higher starting price, that’s a 15.5 percent dip. The Model Y fell 13.6 percent, likely nudged along by the arrival of a refreshed version this spring.
Other notable entries include the Porsche Taycan (down 7 percent), Maserati Levante (7.9 percent), and Lincoln Aviator (5.9 percent). But here’s the kicker: every EV on the list lost more value than the average used EV, which slipped just 4.8 percent. Meanwhile, used gas-powered cars actually gained value—up 5.2 percent on average. That’s a twist nobody saw coming a few years ago.
Is This Just a Tesla Problem, or Are All EVs at Risk?
While Tesla dominates the headlines, it’s not alone. The Porsche Taycan, for instance, is also taking a hit. But Teslas are unique because they’re so visible in the market and have seen rapid price adjustments on new models. When Tesla cuts new car prices, used values often follow suit—sometimes dramatically. Add in the fact that new tech and battery improvements arrive quickly, and yesterday’s hot EV can start to look a little dated, fast.
There’s also the issue of incentives. With federal EV tax credits set to change this September, buyers are rushing to take advantage of deals on new cars, leaving used models in the dust. Once those credits disappear, the used market could feel even more pressure as fewer buyers are willing to pay a premium for last year’s tech.
What Does This Mean for Buyers and Sellers?
If you’re shopping for a used EV, this could be your moment. Prices are softening, and there’s more room to negotiate. But if you’re selling, brace yourself: the days of sky-high resale values are over, at least for now. Owners who bought at the peak of the market may find themselves underwater, especially if they financed their purchase.
Dealers are feeling the pinch too. Many are sitting on inventory that’s worth less every month, and some are choosing to hold off on buying used EVs altogether. It’s a classic case of a market correction, and it’s happening in real time.
Are There Any Upsides to Falling Used EV Prices?
Absolutely. For one, lower prices make EVs more accessible to a broader range of buyers. That’s good news for anyone who’s been priced out of the market until now. Plus, as more affordable used EVs hit the streets, charging infrastructure and service networks are likely to improve, making ownership easier for everyone.
There’s also a silver lining for the environment. More used EVs in circulation means fewer gas cars on the road, even if the transition is a little bumpy. And as battery tech continues to improve, today’s used EVs could become tomorrow’s bargains for savvy shoppers willing to accept a little range loss or older features.
What Should You Watch for If You’re Considering a Used EV?
Do your homework. Not all used EVs are created equal. Battery health, warranty coverage, and software updates can make a huge difference in long-term satisfaction. Ask for a battery report, check for remaining warranty, and make sure you’re comfortable with the car’s range and charging options.
It’s also worth keeping an eye on policy changes. If federal or state incentives shift again, the market could swing in a new direction. Flexibility is key—don’t get too attached to one model or price point.
The big takeaway? Navigating the used EV market isn’t about perfection—it’s about smarter adjustments. Start with one change this week, and you’ll likely spot the difference by month’s end.