Tesla Model S X Values Plunge 15% Year Over Year

Used electric vehicle (EV) prices have been on a downward trajectory, with Tesla models experiencing significant depreciation. The Tesla Model S and Model X saw their values drop by more than 15% from June 2024 to June 2025. Overall, the EV category witnessed a 4.8% year-over-year price decline, while internal combustion engine vehicles and trucks increased in price by 5.2%.

Tesla's challenges extend beyond its new car sales, as its used vehicles are also losing value rapidly. This decline is attributed to several factors, including the brand's struggles due to Elon Musk's public stance on political and governmental issues, as well as a general waning interest in EVs. The Tesla Model S, for instance, saw a 15.8% drop in value, equivalent to $8,768 less than its worth in June 2024. The Model X followed closely with a 15.5% decrease, or $9,544 less. The Model Y also experienced a notable decline, with its value dropping by 13.6%, or $4,637.

The used EV market share growth has slowed significantly, falling to just 14.2% in the past year, a stark contrast to the 98% growth rate seen in 2024. This slowdown is accompanied by an increase in supply as more people are disposing of their EVs. The upcoming end of the $4,000 incentive for purchasing a used EV on September 30 is expected to further drive prices down.

According to an executive analyst, the role of electric vehicles in both the new and used car markets is undeniable, but it may not reach the levels that many government and private EV proponents have been advocating for years. Market share and pricing trends suggest that EV demand has peaked and is likely to decline in the coming years. This analysis aligns with the current market conditions, where the rapid depreciation of used EVs and the slowing growth in market share indicate a shift in consumer preferences and market dynamics.