Tesla's Price Cuts Boost U.S Used EV Sales By 32% In Q1 2023

According to the most recent Cox Automotive statistics, Tesla's price reduction has led to an increase in used electric vehicle (EV) sales in the United States.

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In the first quarter of 2023, used EV sales grew by 32%, but average retail listing prices decreased to $43,400, a 4% decline from the same period last year and much lower than the average new EV price of roughly $59,000.

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According to data firm Cox Automotive, Tesla's dramatic price decreases for new vehicles have resulted in lower used EV pricing.

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Increase in EV Wholesale Values

According to Cox Automotive, used EV wholesale values climbed by 3.7% year on year, compared to a 2.4% overall fall.

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This suggests that demand for used EVs is expanding as a result of their affordability and increased environmental consciousness.

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Furthermore, Trade Algo reports that the implementation of a $4,000 used EV tax credit by Congress in August 2022 is likely to stimulate the used EV industry.

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Buyers must acquire a used EV from a dealer for $25,000 or less to qualify, with the maximum credit set at 30% of the transaction price up to $4,000.

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Additional Information on Tesla Pricing Reduction

According to Bloomberg, Tesla has reduced the price of each model of its higher-volume Model 3 and Y EVs by at least $1,000 and the price of its more costly Model S and X EVs by $5,000.

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This is Tesla's second large-scale price decrease of the year, following a round of price cuts in January.

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Despite a second wave of reductions announced in early March, Tesla delivered 10,695 Model S and X vehicles in the first quarter of 2023, the lowest amount since the third quarter of 2021.

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Tesla CEO Elon Musk has declared that he is prepared to compromise the company's profitability to grow in the face of rising interest rates and the possibility of a recession.

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Tesla has higher profit margins than incumbents like Ford and upstart entrants such as Rivian and Lucid Group.

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Despite conflicting sales results for Tesla in the first quarter of 2023, the firm is anticipated to continue its dominance in the EV industry. According to Cox Automotive, it will account for a major chunk of the expected jump in new EV sales in the United States this year.

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In the US EV market, GM has surpassed Ford.

In other news, General Motors is progressively climbing to the top of the electric vehicle industry. Its most recent accomplishment was edging out long-time competitor Ford Motor Company to gain second place in the American electric car market.

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According to Trade Algo, Ford sold 11,000 electric vehicles in the first quarter of 2023, while General Motors sold nearly twice as many.

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GM sold up to 21,000 electric vehicles in the first three months of 2023, beating its decades-old competitor, Ford.

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