Old Tesla vehicle cost Popped bubble impacts on desire for new car(Tesla Vehicle)-

SAN FRANCISCO –(Tesla Vehicle)

For most of the past two years, Tesla customers who waited months for their new car have had an odd option: retain the new electric car or sell it at a profit to someone who has less patience.

However, the days of the Tesla flip are coming to an end, which might endanger the already declining costs of new cars.

According to industry statistics supplied to Reuters, used Tesla prices are dropping more quickly than those of other automakers, and the clean-energy status symbols are remaining on dealer lots for a longer period of time.

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In November,Tesla Vehicle-

The typical cost of a used Tesla was $55,754, which is a reduction of 17% from the record price of $67,297 in July. According to Edmunds statistics, the used automobile industry as a whole had a 4 percent decline over that time. In November, used Teslas stayed in dealer inventory for an average of 50 days as opposed to 38 days for all used automobiles.

The Ukraine war’s impact on rising gas costs increased demand for Teslas, one of the market’s few long-range electric vehicles. Tesla Inc. increased its own pricing more quickly than those of competing automakers, increasing its profit margins. Additionally, some new Tesla owners profited from the burgeoning market by selling their relatively new vehicles for a profit before placing orders for new ones, which increased demand for Tesla’s new vehicles.

Now that fuel costs are declining, interest rates are rising, Tesla production is rising, and EV competition is expanding, used Tesla prices are falling faster than the market, which has a trickle-down impact on the cost of new Teslas.

In response to investor concerns about waning demand, Tesla this week quadrupled a U.S. new-car price drop to $7,500 for Model Ys and Model 3s delivered this year.

Analysts noted that the fact that about a third of used Tesla for sale in August were 2022 models up for resale indicated that the original purchasers intended to flip the cars. According to the research company Edmunds, this contrasts with the 5% market share of other brands on the secondhand market.

On Thursday, Musk said that “dramatic interest rate increases” have driven up the cost of all automobiles, both new and used, and that Tesla would drop prices to maintain volume growth, albeit doing so would reduce profits.

Reuters sent an email to Tesla, which has since abolished its media relations division, but it received no response.

In reality, Tesla is far from alone: when used car vendor CarMax last week announced an 86 percent reduction in third-quarter earnings, one analyst said that the U.S. used car sector is now experiencing a “used vehicle recession.”

But Tesla is leading the retreat(Tesla Vehicle)-

According to Ivan Drury, director of Insights at Edmunds.com, Teslas were “essentially for a long time really the only viable product when it came to used EVs,” which caused the reasons driving up the value of its vehicles to be exaggerated compared to other manufacturers.

According to Liz Najman, content marketing manager at EV researcher Recurrent, EVs are entering the market with a lot of excitement, including the Ford F-150 Lightning and the Hyundai Ioniq 5.

Greg Profitt, a software developer, paid $49,000 for a brand-new Model Y last year, then sold it for $12,000 more three months later. He placed an order for a new one, but just purchased a used Tesla at a bargain.The additional $7,500 discount would not be enough to maintain demand, he continued, adding that “the economy kind of terrifies me to purchase new.”