Tesla leads large drop in used electric car value, Model 3 down 30%
Tesla is leading a large drop in used electric car value in the US – with Model 3 being down 30% over the last year.
After an incredible rise in 2022 that resulted in some used EVs selling for more than brand new cars, used car value finally started to drop over the last six months.
According to iSeeCars, used car prices have dropped by less than four percent year-over-year for the third month in a row, but used EV prices are dropping even faster:
But used electric vehicle prices are collapsing even as overall used car prices stabilize. June saw used EV prices drop 29.5 percent from a year earlier, after falling 28.9 percent in May, 24 percent in April, and 16.8 percent in March. iSeeCars analyzed over 1.8 million 1- to 5-year-old used cars to identify the latest used car pricing trends.
iSeeCars Executive Analyst Karl Brauer notes that with Tesla representing the majority of the market, it is weighing heavy on the used EV price drop:
Vehicle prices are in a free-fall, dropping 15.7 percent since January and by an increasing amount every month so far in 2023. With Tesla cutting prices on new models its used EV values have tumbled. And because Tesla makes up the bulk of the used EV market the dramatic drop in Tesla values has impacted the entire category.
The Tesla Model 3 is leading the price drop with a whopping 30% drop in value since the high of June 2023:
| Top 10 Used Cars With the Greatest Year-over-Year Price Drops (June 2022 vs. June 2023) – iSeeCars Study | ||||
| Rank | Model | Average Price (June 2023) | $ Price Change from June 2022 | % Price Change from June 2022 |
| 1 | Tesla Model 3 | $37,023 | -$16,258 | -30.5% |
| 2 | Tesla Model X | $70,158 | -$18,980 | -21.3% |
| 3 | Nissan LEAF | $22,504 | -$5,354 | -19.2% |
| 4 | Tesla Model S | $64,938 | -$15,212 | -19.0% |
| 5 | Land Rover Range Rover | $75,481 | -$17,095 | -18.5% |
| 6 | Land Rover Range Rover Velar | $46,269 | -$9,783 | -17.5% |
| 7 | Land Rover Discovery | $40,986 | -$8,255 | -16.8% |
| 8 | Hyundai Ioniq Hybrid | $20,148 | -$3,893 | -16.2% |
| 9 | Jaguar E-PACE | $33,213 | -$6,401 | -16.2% |
| 10 | BMW 5 Series (PHEV) | $33,607 | -$6,170 | -15.5% |
| National Average | $32,811 | -$1,237 | -3.6% | |
Electrek’s Take
It’s wild that prices dropped 30%, and yet the average used Model 3 still sells for $37,000, which is pretty close to the base price of a brand-new Model 3.
The high interest rates are becoming high enough that they are not only affecting new car buyers, but also used car transactions.
It’s creating a weird situation where used car inventory is at a record low because people are not upgrading, but prices are still falling because there’s insufficient demand due to buyers not securing financing.
We are going to have to wait a little more to have a great used EV market.
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Tesla is going to build a new Megafactory in Texas near Houston, according to a tax abatement agreement with Waller County.
At the time of writing, Tesla had yet to comment on the new project, but the Waller County Commissioners Court confirmed the project on Wednesday when they approved a tax abatement deal with the company:
Under the proposed agreement, Tesla will receive tax abatements from Waller County based on property improvements. The deal includes $44 million in facility improvements and $150 million in Tesla manufacturing equipment that Tesla will install. The next phase involves a new $31 million distribution facility with about $2 million in Tesla distribution equipment and building upgrades.
Tesla is going to take over a 1-million-sq-ft building that it already held the lease on at the Empire West industrial park near Katy, Texas – just outside of Houston.
Logistics company DB Schenker occupied the space where it handled parts for Tesla, but it will move out and Tesla plans to build Megapack production lines at the site:
Tesla will operate a new Megapack battery storage manufacturing facility at a 1 million-square-foot building, which was initially constructed with no tenant on speculation that it would attract jobs and economic development.
Tesla has previously referred to plants producing Megapacks as “Megafactory”. The company already operates one in Lathrop, California, and one in Shanghai, China, where it just started production.
Those factories are set up for a production capacity of 40 GWh worth of Megapacks per year.
It’s not clear if Tesla plans for a similar capacity at this new factory, but the county announced project should result in creating 1,500 jobs.
In addition to the existing building, the project will include the construction of an additional “600,000-square-foot distribution facility with some manufacturing capabilities.”
Unlike its automotive business, Tesla’s energy business has been growing at an impressive pace – although prices and margins have come down last year.
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![Is Genesis taking notes from Porsche? New GV60 Magma caught with the Taycan [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/03/Genesis-GV60-Magma-Porsche-2.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
Genesis is gearing up to unleash its alter ego with its upcoming Magma lineup, its debut into the world of high-performance luxury vehicles. First up is the Genesis GV60 Magma, due out later this year. As testing wraps up, the GV60 Magma was spotted alongside none other than the Porsche Taycan.
The first dedicated Genesis EV model, the GV60, will kick off another new chapter for the Korean luxury automaker.
Genesis unveiled the GV60 Magma last March, claiming it will kick off “the brand’s expansion into the realm of high-performance vehicles.” The performance EV includes an improved battery, chassis, and motor for added performance.
The Magma model boasts a wider, lower stance for more control. Other key upgrades include a wider front air intake to help cool the batteries, motor, and brakes. It also includes air curtains to maximize efficiency and an added roof fin channels air to the rear wing, generating downward force.
Genesis upgraded the interior to match the GV60 Magma’s luxurious, sporty design. It includes unique sports car-like bucket seats with exclusive “double-diamond stitching” in the Magma orange and titanium coloring.
Genesis GV60 Magma spotted with the Porsche Taycan
With its official debut coming up, the sporty Genesis GV60 Magma was spotted testing alongside a Porsche Taycan and Hyundai’s IONIQ 5 and IONIQ 6 N models.
Despite the camouflage, the video from CarSpyMedia reveals a few new design elements, like the two-line headlight featured on the updated GV60 model.
Genesis will launch the GV60 Magma later this year in its home market, followed by the US, Europe, and others. Production is scheduled to start in the third quarter of 2025.
Will the Genesis GV60 Magma keep up with the Porsche Taycan or Tesla Model S Plaid? Priced and specs will be revealed closer to launch, but it will sit above the Performance AWD trim, which starts at $69,900 in the US. With up to 429 horsepower and 516 lb-ft of torque, it can hit 0 to 60 mph in 3.7 seconds.
| Horsepower | 0 to 60 mph (seconds) |
Starting Price | |
| Genesis GV60 Performance | 429 | 3.7 | $69,900 |
| Genesis GV60 Magma | ? | ? | ? |
| Porsche Taycan | 402 | 4.5 | $99,400 |
| Porsche Taycan Turbo GT (with Weissach Package) |
1,092 | 2.1 | $230,000 |
| Tesla Model S Plaid | 1,020 | 1.99 | $89,990 |
In comparison, the Porsche Taycan starts at $99,400 with up to 402 hp and a 0 to 60 mph time in 4.5 seconds. The Taycan Turbo GT, equipped with its Weissach package, packs 1,092 hp for a 0 to 60 mph sprint in just 2.1 seconds, but it costs $230,000.
Tesla’s Model S Plaid starts at $79,990 and can accelerate from 0 to 60 mph in 3.1 seconds with 1,020 horsepower. Which performance EV are you choosing?
Source: CarSpyMedia
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