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One of Tesla's most popular models just dropped by over $11,000: 'They are only going to fall even lower'

"Tesla had an artificially high used resale value due to scarcity."

Tesla Model 3

Photo Credit: iStock

Tesla remains the industry leader in the electric vehicle market — for now, at least. But as more and more competitors have entered the space, almost all at a much lower price point, Tesla has been forced to cut prices on some of its most expensive EVs.

It seems that a price war really is brewing in the EV market. And that's a great thing for consumers.

It's not just new Teslas that have seen a drop in price. The price war has implications for the secondary market as well. Electrek is now reporting that prices for a used Tesla Model 3 are down 21.5% from last year's peak.

The average Tesla Model 3 is now selling for $41,337, down $11,302 over the past six months.

This price drop is reflected across the entire EV secondary market, although no car has seen a bigger drop than the Model 3. According to Electrek, a used Nissan LEAF is down 12% from $25,734, while a used Toyota Prius Prime is down 11.5% from $29,856.

At one point last year, used Tesla Model Ys were selling for higher prices than brand-new ones — this was clearly not sustainable, and the market seems to have corrected itself and come back down to earth.

All of that is good news for potential EV buyers who find themselves priced out of the new car market. It is worth noting, too, that the vast majority of brand-new EVs still cost less than a used Tesla. 

Many drivers seemed excited by the prospect of continually dropping prices. 

"They are only going to fall even lower as there are more and more of them on the used market," one commenter wrote in response to the Electrek article. "Tesla had an artificially high used resale value due to scarcity. That is no longer the case, new or used for Tesla." 

"It's great news for anyone in the market for an affordable Tesla," another wrote. "Not everyone wants, or can afford, to buy new.

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