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Spring 2023 study shows just how popular Tesla has become among used car buyers: 'It dominates the luxury market'

"Gas prices have really pushed shoppers to consider EVs that otherwise wouldn't have sooner."

Tesla ranks most popular used EV brand

Photo Credit: iStock

Tesla has the most popular used electric vehicle (EV) models in the U.S., according to CarMax, a highly popular used vehicle retailer, in its Spring 2023 Electric Vehicle Consumer Report. 

Of the company's top 10 most popular EVs, Tesla holds four spots. The Model 3 and Model Y came in first and second, while the Model X and Model S came in seventh and eighth. 

Used Tesla prices vary, with the cost-effective Model 3 selling for an average price of $37,000, according to the report. On average, a used Model Y sells for $47,807, with a Model S selling for $63,331. The Model X is the most expensive of Tesla's used vehicles on the list averaging $72,136.

CarMax's report is good news for both Tesla and the EV industry in general, as it shows that interest in purchasing a used EV doubled between 2022 and 2023.

EVs are well-known for their environmental benefits, limiting air and noise pollution and improving local air quality by creating less pollution than cars powered by dirty energy sources.

The top states for used EV sales were in the West, including California, Washington, Nevada, Oregon, and Arizona. This may partly be due to the tax rebates and other incentives that many of these states offer for drivers purchasing EVs. 

Mississippi, Alabama, Kentucky, South Carolina, and Tennessee have the lowest number of used EV sales, according to the report. According to Lendingtree.com, most of these are among the worst states to own an EV due in part to a lack of incentives and charging ports. 

In its analysis, CarMax partly attributed the spike in used EV sales to rising gas prices. One study shows that, over the last 20 years, gas prices in some states have increased by almost 300%. 

"Gas prices have really pushed shoppers to consider EVs that otherwise wouldn't have sooner," Ali Chapman, a senior customer insights analyst at automotive research and shopping firm CarGurus, told Time last year. 

Regarding Tesla's continued popularity: it broke into the top ten best-selling cars in the U.S. in 2022 with the Model Y. Cox Automotive executive analyst Michelle Krebs told CNBC that Tesla will continue to grow, even despite some setbacks.

"It's no surprise that Tesla ranks that high," she said. "The brand, despite all the news and stuff, still dominates the EV market, and it dominates the luxury market."

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