Tesla’s electric vehicles can move fast — but used model prices can move even faster.
The cost of a used Tesla rose about 6% over the past two weeks to about $65,000 as of March 20, according to CoPilot, which tracks prices at auto dealerships across the country. Newer used models — those just one to three years old — average around $70,000, CoPilot also reported.
The price increases for old Teslas come as the prices of brand new Teslas have also increased. And the average price of all used cars — both petrol and electric — has increased by a staggering 41% over the past year.to Edmunds.
by thousands of dollars earlier this month, after CEO Elon Musk tweeted that the company “is seeing significant inflationary pressures in commodities and logistics recently.” Tesla’s Model X is now $114,900 — a jump of more than $10,000. The Model S price has increased by $5,000 to $99,990; Model 3 Performance price increased by $3,000 to $61,990; and the Model Y price increased by $4,000 to $62,990.
Recent Tesla price increases are between 3% and 5% in the U.S. and China, Dan Levy, an analyst at Credit Suisse, said in a research note.
Aluminum, nickel and palladium are among the raw materials Tesla uses to build its vehicles. Aluminum, nickel, and palladium help make catalytic converters, air conditioner condensers, and other vital auto parts. Nickel is used to make the batteries in Tesla’s Model Y.
The price hikes are unlikely to hurt demand for Tesla vehicles, AutoForecast Solutions’ Sam Fiorani told Yahoo Finance. That’s partly because Tesla is the world’s largest EV manufacturer, with a market value of $1 trillion.
Soaring gas prices are clearly increasing consumer interest in purchasing an electric or hybrid vehicle, said Pat Ryan, CEO of CoPilot. And rising Tesla prices are in some ways just a by-product of demand for electric vehicles, he said.
“Prices are now hitting highs of $65,000 and supply has fallen to record lows, making it much harder for consumers in the electric vehicle market,” Ryan told CBS MoneyWatch. “Across the board, the market has become increasingly competitive for people looking to transition from a gas guzzler.”
Auto industry experts said it’s important to keep an eye on the price of electric vehicles as the US seeks to reduce its reliance on fossil fuels and gas-powered cars. Charging stations are springing up across the country to encourage consumers to buy electric cars, but price hikes like Tesla’s could put these vehicles out of reach of the mid-range financially, experts said.