Used Tesla prices are falling faster than other electric vehicles in both the US and UK markets, as backlash grows against Elon Musk.
In the United States, second-hand Tesla prices dropped seven per cent year-on-year in March, compared to just 1.5 per cent for other EV brands, data shows.
The trend is even more pronounced in Britain, where used Teslas fell 15 per cent in value, outpacing the general 10 per cent decline for all used electric vehicles, according to sales platform Auto Trader.
This price drop coincides with a significant increase in the number of used Teslas entering the market ahead of the new Model Y being released in June.
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Prices of used Tesla electric vehicles continue to fall across the UK and the United States
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While some have speculated that Tesla's brand might be suffering due to Elon Musk's emergence as a figurehead for the American far right and his relationship with Donald Trump, market data suggests other factors are primarily responsible.
Edmunds, a US car shopping site, reported a sharp rise in post-2017 Teslas being traded in at dealerships, accounting for 1.4 per cent of all trade-ins in mid-March, up from 0.4 per cent a year earlier.
Kevin Roberts, director of economic and market intelligence at CarGurus, told the Financial Times that the US sales data suggested "an influx of former fleet vehicles have caused the average list price of a used Tesla to drop".
Auto Trader's commercial director, Ian Plummer, pointed to similar factors in the UK, where 5,400 second-hand Teslas were listed in March, up from 2,900 a year earlier.
Despite price drops, Plummer noted "strong levels of demand for used Teslas" in Britain, where they sell after an average of 23 days compared with 29 for other EVs.
Tesla's new car sales are struggling globally, with first-quarter figures showing dramatic declines across European markets.
Official statistics reveal sales dropped 55.2 per cent in Sweden, 49.7 per cent in the Netherlands, 41.1 per cent in France and 25.5 per cent in Norway.
This contributed to Tesla's worst quarter since 2022, with the group delivering around 336,000 vehicles in the first three months of this year.
This represents a 13 per cent decrease from a year earlier and falls well below the 390,000 expected by analysts.
Ryan Brinkman, auto analyst at JPMorgan, described the figures as "far below even our low-end estimate, confirming the unprecedented brand damage we had earlier feared".
Tesla also faces pressure from Chinese competitors who are offering high-tech and reliable EVs for a much cheaper price than traditional brands.
The challenge was highlighted in March when shares in China's BYD reached a record high after announcing a platform capable of charging EVs in the time it takes to refuel a petrol car.
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TESLAMeanwhile, Tesla's shares have plummeted more than 40 per cent this year, surrendering gains made after the US election.
Alexander Potter from Piper Sandler argues that concerns about "brand damage" are "overdone", suggesting supply issues are more significant.
Much rests on the upcoming refresh of the Model Y, Tesla's best-selling car, which analysts hope will revitalise the company's ageing vehicle lineup.
Harald Hendrikse of Citigroup suggested that customers may be delaying purchases in anticipation of the revamped model.
