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Used Teslas Get Pricey Post-Tax Credit
26 Feb
Summary
- Used Teslas increased 4.3% in price since tax credit cutoff.
- Model S and X prices rose significantly, anticipating discontinuation.
- Most other used EVs are now significantly cheaper than last fall.
The used electric vehicle market has seen a surprising shift since the federal EV tax credit expired on September 30, 2025. Contrary to expectations, used Tesla prices have risen by an average of 4.3% between the credit's end and January 2026. Specifically, older Model S and X vehicles have experienced price increases of 8.5% and 10.3% respectively, reaching over $51,000 and $57,000.
This surge in Tesla prices comes as the company announced the discontinuation of the Model S and X by mid-2026 to accommodate Optimus robot production at its Fremont factory. Meanwhile, most other EV brands, including Ford Mustang Mach-E and Volkswagen ID.4, have seen their used prices drop by at least 5%.
The overall used EV market now accounts for 20% less than it did in September 2025, erasing previous gains from incentives. New EV prices also dipped by 2.3%, with models like the Chevrolet Equinox EV and Hyundai Ioniq 5 being repriced. Experts note that higher-priced, lower-volume vehicles have maintained or increased their value, while mainstream EVs are now compensating for the loss of credits with lower prices.
