Tesla cars are facing this new hurdle. Details here
Tesla seems to be facing a lot of difficulties in recent times. The latest among them is the rising competition from used Tesla electric cars. As the automaker's used car price bubble has popped, its new car demand seems to be facing pressure, with potential customers showing more interest towards the easily accessible pre-owned Tesla EVs than the new models. A Reuters report claims that the prices of the used Tesla models are declining faster than those of other carmakers. This poses a potential threat to the automaker's new cars, which have already witnessed multiple price cuts throughout 2022.
Tesla has been known for delaying the launch and production of its vehicles for years after showcasing a model. Also, the carmaker has been notoriously known for a prolonged waiting period. Apart from that, the company has been accused of pressurising its buyers who have booked a Tesla model to pay extra money to receive their booked EV faster or wait a painstakingly long time.
These have certainly dented the automaker's brand value at a time when several legacy car brands and EV startups are thriving to launch their respective products in the global electric vehicle market. So much so that the electric car manufacturer and its famous CEO Elon Musk, have been accused by many, including its investors, of overpromising and underdelivering.
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Now, adding salt to injury, the price of the used Tesla cars has started dropping, posing a threat to its new car demand and sales. The report claims that the average price for a used Tesla car in November was $55,754, down 17 per cent from a July peak of $67,297. Edmunds' data claims that the overall used car market recorded a four per cent drop during that period.
One reason behind this price drop is the used Tesla EVs have been taking more time to be sold off than other used cars. The report claims that used Teslas were in dealer inventory for 50 days on average in November this year, compared to 38 days for all used cars. Apart from that, the factors such as easing fuel prices, rising interest rates, growing competition from other electric vehicles, and Tesla's production output hike are also fuelling the drop in used Tesla car prices.