In a surprising twist in the electric vehicle market, used Tesla prices have surged by 4.3% following the expiration of the federal EV tax credit on September 30. This contrasts sharply with the broader used EV market, where prices have, on average, decreased by 3.6%. The overall market share for used EVs has also taken a hit, plunging 20% during this period.
The findings from iSeeCars, which analyzed over 1.7 million used cars, illustrate a distinct bifurcation in the market. While Tesla vehicles have retained their value, other brands are struggling to keep pace in the absence of the tax credit.
Tesla’s Dominance in the Used EV Market
The average used EV price has risen by 3.5% since September, but this figure is misleading due to Tesla’s strong market presence. Tesla’s price increase, from $30,040 to $31,329, has obscured the declining trend experienced by other manufacturers. Excluding Tesla and the Porsche Taycan, used EV prices have dropped from $24,629 to $23,738, a fall of 3.6%.
When examining individual models, the disparity becomes even more pronounced. The Hyundai Kona Electric saw a price drop of 6.4%, the Volkswagen ID.4 fell by 6.2%, the Kia Niro EV declined by 5.2%, and the Ford Mustang Mach-E decreased by 5.1%. In contrast, Tesla models have experienced price increases: the Model Y rose by 1.3%, the Model 3 by 2.6%, the Model S by 8.5%, and the Model X by 10.3%.
| Model | Avg Price Sept. 2025 | Avg Price Jan. 2026 | % Change |
|---|---|---|---|
| Hyundai Kona Electric | $21,020 | $19,678 | -6.4% |
| Volkswagen ID.4 | $23,307 | $21,860 | -6.2% |
| Kia Niro EV | $21,128 | $20,024 | -5.2% |
| Ford Mustang Mach-E | $30,575 | $29,014 | -5.1% |
| Nissan LEAF | $16,360 | $15,606 | -4.6% |
| Polestar 2 | $26,006 | $25,508 | -1.9% |
| Tesla Model Y | $29,603 | $29,989 | +1.3% |
| Tesla Model 3 | $25,061 | $25,701 | +2.6% |
| EV Average | $29,637 | $30,666 | +3.5% |
| Porsche Taycan | $74,465 | $77,552 | +4.1% |
| Tesla Model S | $47,226 | $51,249 | +8.5% |
| Tesla Model X | $51,973 | $57,306 | +10.3% |
This marks a significant turnaround. Earlier in 2025, Tesla’s used car prices were declining, even dropping below the average used car price. The resurgence in Tesla’s used car values stands in stark contrast to the struggles of other brands since the tax credit’s expiration.
Decline in Used EV Market Share
Alongside these pricing trends, the used EV market share has diminished notably. As of September 2025, EVs comprised 3.5% of 1- to 5-year-old used cars sold, but by January 2026, this had decreased to 2.8%. This represents a 20% drop, a stark contrast to the 19.5% increase in market share observed during the same period the previous year.
This shift highlights the direct impact of the loss of the $4,000 used EV tax credit on consumer behavior, as noted by iSeeCars Executive Analyst Karl Brauer.
Original Story at electrek.co