Tesla prices climb as other used EVs get cheaper

Since the federal tax credit for used electric vehicles ended on September 30, 2025, most used EVs have become cheaper. Tesla models and the Porsche Taycan are the big exceptions, and their prices have moved in the opposite direction.

An analysis by iSeeCars.com looked at more than a million used vehicles between one and five years old and compared prices before and after the credit expired. The study included EVs that have been in production for at least four years, which brought in models from Tesla, Porsche, Hyundai, Kia, Volkswagen, Nissan and Ford’s Mustang Mach‑E.

Tesla prices rise as rivals lose ground

On average, used Tesla prices are up 4.3% since the used EV credit ended. At the same time, nearly every other used EV brand saw prices slip by about 3.6% over that period.

Tesla’s role in the used EV market is large, and that has a clear effect on the numbers. Analysts say Tesla accounted for far more used EV sales than any other single brand, selling over 10,000 more used vehicles than Audi, the next closest brand, in January alone. As a result, the overall average price of a used EV actually rose 3.5%, from roughly 29,600 dollars to about 30,700 dollars, once Tesla is included.

Take Tesla out of the calculation, and the picture flips quickly. Average prices for non‑Tesla used EVs moved down from about 24,600 dollars to just under 23,800 dollars over the same period. That is a clear sign of weaker demand for many electric models now that the tax incentive is gone.

Model S, Model X and Taycan lead the gains

The strongest price gains are at the high end of the market. Used Tesla Model X values climbed about 10.3%, rising from roughly 51,900 dollars to more than 57,300 dollars. Used Model S prices increased about 8.5%, from around 47,200 dollars to just over 51,200 dollars.

Prices for Tesla’s more affordable models rose as well, although by smaller margins. Used Model 3 prices increased about 2.6%, and used Model Y prices moved up about 1.3% on average, according to the iSeeCars data.

Porsche sits in rare company with Tesla in this market. The Porsche Taycan was the only non‑Tesla EV in the study to post an increase in used prices, gaining about 4.1% to reach an average of roughly 77,500 dollars. That reflects its position as a premium performance EV with a narrower, wealthier buyer base.

Part of the jump in Model S and Model X prices comes from a major strategy change at Tesla. In late January 2026, Elon Musk said Tesla will end production of the Model S and Model X in the second quarter of 2026. The Fremont, California factory capacity now used for those vehicles will shift to building Tesla’s Optimus humanoid robots and related AI products.

That decision turns both models into future discontinued products with fixed supply, at least from new production. Used buyers who still want a large Tesla sedan or SUV now have a shrinking pool of vehicles to choose from. As this plan became clear, demand for clean, low‑mileage examples increased, and resale values reacted. Dealers have started raising asking prices in anticipation of tighter supply later this year.

This move makes Tesla’s flagship models look more like collectors’ items than ordinary used cars. Even so, analysts say this effect is strongest for better‑equipped and lower‑mileage units, while higher‑mileage cars see more modest gains.

Mainstream EVs see prices slide

Lower‑priced and mainstream electric vehicles are moving in the opposite direction. The iSeeCars study found that several popular non‑Tesla EVs logged some of the steepest price drops since the credit expired.

Here are some of the notable moves in used prices:

• Hyundai Kona Electric: down about 6.4%
• Volkswagen ID.4: down about 6.2%
• Kia Niro EV: down about 5.2%
• Ford Mustang Mach‑E: down about 5.1%
• Nissan Leaf: down about 4.6%, to an average near 15,600 dollars

“Lower‑cost electric vehicle pricing has struggled since the expiration of the EV credit,” iSeeCars executive analyst Karl Brauer said. He pointed out that buyers in this price band are more sensitive to monthly payments and total cost, so the loss of the tax break weighs more heavily on demand.

Market share data points in the same direction. Used EVs made up about 3.5% of the used market before the credit ended, but that share slid to around 2.8% in the months after, according to the study.

New EV discounts and slower sales

Pressure on pricing is not limited to used vehicles. New EV prices, excluding Tesla, have dropped about 2.3% in recent months, while prices for new gasoline vehicles are up about 2.5% over the same period.

Some individual EV models have seen sharper declines. Reports point to cuts of about 13.8% for the Hyundai Ioniq 5, 8.7% for the Chevrolet Equinox EV and 6.8% for the Ford F‑150 Lightning as automakers try to offset the loss of the tax credit with direct discounts and dealer incentives.

Still, those moves have not fully stabilized demand. Data from market trackers indicate EV sales dropped sharply in early October 2025, right after the credit ended, and volumes have been slower to recover than many manufacturers hoped.

Another shift is coming that could push used EV prices down further for non‑Tesla models. Over the past few years, a large share of new EVs were leased, helped by a tax rule that let leasing companies claim incentives even when buyers could not claim them directly.

Industry estimates suggest roughly 71% of EV transactions were leases during that period. Many of those two‑ and three‑year leases are ending in 2026. Some forecasts say about 400,000 additional EVs could come back as off‑lease vehicles this year alone.

If that volume hits dealer lots, supply of used EVs will increase, especially in mainstream segments. As a result, prices for non‑Tesla models may soften further, giving price‑sensitive buyers more bargaining power. At the same time, analysts do not expect Tesla prices to move in lockstep, given the brand’s stronger demand and the production cut for Model S and Model X.

All EV batteries sold in the United States carry a federal warranty requirement of at least eight years or 100,000 miles, which adds some protection for used buyers concerned about long‑term battery health. That coverage applies regardless of the tax credit status.

Brauer’s advice reflects this shift. “If an electric vehicle meets your requirements, now is a great time to purchase a used one at a lower price,” he said. He added that “while Teslas are performing well in the used market, there are numerous non‑Tesla alternatives that offer comparable range, modern design, and more conventional interiors that many buyers prefer.”

For shoppers focused on Tesla, the picture is different. Rising prices and future scarcity for Model S and Model X could push some buyers toward the Model 3 and Model Y, which still carry smaller price increases. And if demand remains strong, Tesla’s used prices may stay above the broader EV trend for some time.