Used Tesla prices have soared since the end of the $7,500 tax credit, even as other EVs get cheaper

Business Insider

February 20, 2026

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Used Tesla prices have surged since the expiration of the $7,500 federal tax credit for new electric vehicles in September 2022. This upward trend is particularly evident in luxury models like the Model S and X, which saw significant price increases despite Tesla discontinuing these models to focus on its Optimus robot project. While other used EVs have seen their prices drop by an average of 3.6%, Teslas are outperforming the market, with their values climbing 4.3%. This shift highlights a growing demand for pre-owned electric vehicles as new EV sales decline and buyers turn to the used market during what’s being called the "EV winter." The rise in used Tesla prices reflects broader trends in the automotive industry. With automakers pausing production of new models due to reduced incentives, consumers are increasingly turning to the secondhand market. Sales of used battery-powered vehicles jumped 21% year-over-year in January, while new EV sales fell nearly 30%. This shift is a boon for Tesla, which dominates the U.S. used EV market, outselling Audi by over 10,000 units in January alone. The company’s strong presence in the pre-owned sector has been a lifeline for owners who have seen their vehicles’ resale values plummet in recent years. For business and finance enthusiasts, this trend underscores the growing importance of the used EV market as a key driver of demand in an uncertain automotive landscape. Tesla’s ability to maintain—and even increase—its used vehicle prices positions it as a standout player in the industry, offering both buyers and sellers significant value. As competition heats up and new EV sales slow, the used market is becoming a critical battleground for automakers and investors alike. For consumers, the rise in used Tesla prices offers a silver lining amid broader challenges in the electric vehicle sector.

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Originally published on Business Insider on 2/20/2026