With anecdotes of owners trading in their Teslas amid backlash over CEO Elon Musk’s unelected role as agency dismantler-in-chief for Trump 2.0, don’t be surprised to see a few more of the EVs parked under giant tube men at Chicago-area used car lots this spring.
The number of used Teslas for sale in the Chicago area is up 1% in March year-over-year, bucking an overall trend that saw inventory decline by 6.3%, according to used car shopping website iSeeCars. At the same time, used Tesla prices are dropping faster than any other brand, and demand is slumping.
While it is too early to say that Teslas are flooding the used car market, there are signs that a growing number of owners may be pulling the plug in Chicago and across the U.S.
“We want one more month on the national level before we can be really confident of it,” said iSeeCars executive analyst Karl Brauer. “But there were more Teslas available in February than there were in January, and we’re going to see if it kicks up a notch again in March.”
Tesla has become a political lightning rod during the first few months of the second administration of President Donald Trump, as the Musk-led Department of Government Efficiency has fomented dissent while working to eliminate and downsize a number of federal agencies.
From graffiti last week at a new Tesla dealership in Buffalo Grove to keying cars in shopping center parking lots to a “Tesla Takedown” protest in Lisle, the EVs — once a symbol of technological advancement and environmental responsibility — are now a target of anger and angst.
Despite Trump’s effort to prop up Tesla by turning the White House lawn into a pop-up showroom this month, it may not stanch the bleeding. Sales of new Teslas declined by 10% month-over-month in February, according to Cox Automotive. Meanwhile, supply is outstripping demand on the used market.
Tesla owners who do trade in or sell may be in for a reverse sticker shock over the disappointing price their EVs fetch on the used car market.
The average used Tesla price dropped 13.6% year-over-year in February, more than any other brand, according to iSeeCars, while the overall used car market was essentially flat, declining less than 1%.
Tesla’s used car devaluation reflects both a more challenging EV market and potential damage to the brand since the inception of DOGE in January, which has turned Musk, the world’s wealthiest man, into a divisive political symbol.
While growth has slowed, new EV sales hit a record 1.3 million units last year, accounting for 8.1% of total auto sales in the U.S., according to Cox Automotive. Tesla remains the top-selling EV brand, although it showed the largest year-over-year volume decline of any manufacturer as legacy automakers increase their offerings and continue to gain traction.
Tesla’s share of the EV market has dropped from nearly 80% in 2019 to about 45% last year, according to Edmunds.
Trying to maintain market share, Tesla cut prices last year on three of its models and more recently began discounting the new Cybertruck, which launched with an inaugural edition priced north of $100,000. Demand for the futuristic-looking EV has fallen short of expectations and on Thursday, the National Highway Traffic Safety Administration issued a recall for all 46,000 Cybertrucks on the road over exterior panels that can detach while driving.
New Cybertruck sales were down 32.5% in February, according to Cox Automotive.
The used market for Teslas doesn’t look much more promising. There are nearly 700 used Teslas currently for sale in the Chicago market, including about 15 Cybertrucks, according to the Cars.com website.
Searches for used Teslas on Cars.com in February decreased 16% month-over-month, a reflection of consumer demand and an indication shoppers are “increasingly exploring a wider selection of electric vehicles,” David Greene, an industry analyst for Cars.com, said in an email.
In Chicago, the average price of a used Tesla Model 3 dropped by $5,176 to $25,831 in February, a 16.7% year-over-year decline, according to iSeeCars data. A used Model Y lost $6,043 in value, dropping by 16.4% to $30,726. The pricier Tesla Model S lost 14% in value, declining $7,769 to $47,629, while the Model X dropped $6,411 to $54,300, a 10.6% decline on the used car market.
By comparison, the average price of all 1- to 5-year-old used cars in Chicago was relatively stable, dropping $116 to $31,165 in February, a 0.4% year-over-year decline, according to iSeeCars data.
Cybertrucks are not on the list because they are too new to have a multiyear used car history to track, Brauer said.
While inventory is up slightly, demand for used Teslas may be decelerating sharply this year.
Driven Auto Sales, a used car dealership in southwest suburban Burbank, usually has 40 to 50 Teslas on its lot, among the biggest inventories in the Chicago area.
There are about 32 Teslas for sale at Driven, but the dealership is not looking to add to its stock amid the current market uncertainty.
“I’m not selling as many Teslas as I used to,” said Bill Ihmoud, the dealership’s general manager.
Driven Auto, which specializes in EVs, usually buys its Teslas at auction. With the downturn in demand, the dealership has been focusing on acquiring other used electric vehicles such as the Mercedes EQS, Ihmoud said.
Despite his concerns, Ihmoud said if the price is low enough at auction, he would still “reload” his Tesla inventory, even in this politically fraught environment.
“There’s going to be somebody that wants to buy it, especially if the deal is right,” Ihmoud said.
Meanwhile, amid the vandalism, protests and social media backlash, Tesla’s brand has taken a beating while its stock has fallen about 50% since December, generating increasing concern among shareholders and analysts that Musk’s work with DOGE is driving the EV automaker into crisis mode.
Dan Ives, managing director of equity research at investment firm Wedbush Securities, issued a report Wednesday calling on Musk to “take a step back” and balance his DOGE and Tesla CEO roles.
“Musk needs to change course here,” Ives wrote. “Tesla’s future depends on it.”
