Used Tesla Vehicles Are Coming Down In Price - Why This is Good For Tesla
Uses Prices of Tesla Vehicles Coming Down
The price of a used Tesla Model 3 long range from 2018 WITH FSD is $36,400. This is a good thing for Tesla and there is an IRA tax credit for used EVs, an amount up to $4,000. That means you could buy a used Tesla Model 3 long range from 2018 with FSD for just $32,400.
The nice thing about this particular vehicle is that it comes with FSD - Tesla's full self-driving package, which will allow the car to drive itself. This is currently priced at $15,000, so this is quite a steal for this vehicle.
However, it's important to note that this is a 2018 Model 3 and was built at the height of Tesla's production ramp, which means it could have issues and over the last four years, Tesla has made improvements to the Model 3. Still, a $32,400 price is not bad for an EV.
It's also important to note here that the range of this vehicle is probably not the rated 325 miles - a Tesla vehicle will have a degraded battery of about 5 to 10 percent in the first year and about 1 percent per year after that.
You can even get a 2020 Model 3 standard range plus vehicle for just $30,300 with a 250-mile range. Again, Tesla made improvements over the two years from then to now, but that is also a good deal. This particular vehicle doesn't have FSD.
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Will Prices Keep Going Down?
All used Tesla vehicles with the FSD software are most likely not going to decrease in price too much. At the $30,000 price point, that puts these vehicles into about 40% of the total addressable market in the United States.
As time goes on, however, those used Tesla vehicles that do not have FSD will keep going down in price because the software is going to keep getting better and will go up in price.
I'm looking forward to getting the Cybertruck. When I pre-ordered it, it had FSD on it for just $10,000, and I am hoping that Tesla will honor that price. For a used Tesla with FSD, the software simply transfers to the new owner of the vehicle.
Used Tesla vehicles have come down in price and overall, this is good for Tesla because it is going to keep more Tesla vehicles on the road gathering data. Data gathering is what will get FSD to level 4 or beyond so a Tesla can function as a Robotaxi.
Do you think used Tesla vehicles coming down in price is a good thing? Why do you think that?
In Related News: Tesla Model Y to Lead European Car Market
Much better deal - more range and includes FSD https://t.co/eUCbeSXchp pic.twitter.com/Dg1G4jYrAG
— Warren Redlich (@WR4NYGov) February 6, 2023
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Jeremy Johnson is a Tesla investor and supporter. He first invested in Tesla in 2017 after years of following Elon Musk and admiring his work ethic and intelligence. Since then, he's become a Tesla bull, covering anything about Tesla he can find, while also dabbling in other electric vehicle companies. Jeremy covers Tesla developments at Torque News. You can follow him on Twitter or LinkedIn to stay in touch and follow his Tesla news coverage on Torque News.