Tesla Model Y Largest Price Drop Yet Still a Top Seller
The Tesla Model Y, often compared to the iPhone for its popularity and versatility
The Tesla Model Y, often compared to the iPhone for its popularity and versatility, continues to dominate the electric vehicle (EV) market despite seeing significant price drops. Even though EVs in general are depreciating in value and selling more slowly, the Model Y remains a strong contender. Let’s break down what makes this car special, why its prices are dropping, and how it compares to other EVs in today’s market.
A Strong Seller Despite Price Cuts
The Tesla Model Y remains the top-selling EV in the U.S., even as Tesla faces increasing competition. According to Karl Brauer, Executive Analyst at iSeeCars, the Model Y is holding up well, especially in the used car market. It ranks 16th in best-selling used cars across all types—EVs, hybrids, and gas vehicles—and is one of only two electric cars in the top 20.
Brauer notes that while many used EVs are losing value and selling slower, the Model Y is maintaining its appeal. This is a significant feat in a market that isn’t particularly friendly to used EVs at the moment.
Significant Price Drops for Tesla Model Y
For buyers, there’s even better news: the Model Y has experienced the largest year-over-year price drop for one- to three-year-old vehicles. As of August 2024, the average price for a used Model Y was $33,310, down from $44,979 the previous year—a drop of 25.9%, or $11,670.
The only EV tied with the Model Y for this price drop is the Audi E-Tron Sportback, which has also seen a 25.9% reduction. However, the Model Y has a clear advantage, as there are many more available on the market compared to the Audi, making it a more accessible option for buyers.
| Rank Largest % Price Drop | Model | Avg Price 1-3yo Aug 2023 | Avg Price 1-3yo Aug 2024 | % Difference YoY | $ Difference YoY |
|---|---|---|---|---|---|
| 1 | Tesla Model Y | $44,979 | $33,310 | -25.9% | -$11,670 |
| 2 | Audi E-Tron Sportback | $51,710 | $38,298 | -25.9% | -$13,412 |
| 3 | Tesla Model 3 | $35,700 | $26,656 | -25.3% | -$9,044 |
| 4 | Chevrolet Bolt EV | $23,487 | $18,685 | -20.4% | -$4,802 |
| 5 | Nissan LEAF | $20,862 | $16,852 | -19.2% | -$4,010 |
| 6 | Kia Niro EV | $27,900 | $22,740 | -18.5% | -$5,160 |
| 7 | Hyundai Kona Electric | $26,500 | $21,653 | -18.3% | -$4,847 |
| 8 | Tesla Model S | $70,398 | $58,571 | -16.8% | -$11,827 |
| 9 | MINI Hardtop 2 Door | $26,375 | $22,399 | -15.1% | -$3,976 |
| 10 | Tesla Model X | $74,057 | $67,321 | -9.1% | -$6,737 |
| Average | $39,227 | $29,582 | -24.6% | -$9,645 |
What Does This Mean for Buyers?
If you’ve been considering buying a Tesla Model Y, now is a fantastic time to look at the used market. With the price drop, you can get a nearly new Model Y for a fraction of its original cost. Given the large number of Model Ys sold in recent years, there’s a good chance of finding one in excellent condition.
While some buyers might be hesitant due to recent controversies surrounding Tesla’s CEO Elon Musk, it’s hard to deny that the Model Y is still an impressive EV. With a range of about 300 miles, depending on the trim, and access to Tesla’s Supercharger network, it’s one of the most practical electric cars available today.
The Competition is Catching Up
That said, the EV landscape is changing rapidly. Competitors like the 2025 Hyundai Ioniq 5 and Ford Mustang Mach-E are catching up, offering similar features and even access to Tesla’s Supercharger network through adapters or factory-fitted Tesla-style plugs. General Motors is also expected to join this race soon. While Tesla still holds an edge, the competition is heating up.
Should You Buy a Used Tesla Model Y?
In today’s market, a used Tesla Model Y is becoming an increasingly appealing option, especially with prices dropping to the low $30,000 range. If you’re in the market for an electric vehicle that offers a great range, access to a reliable charging network, and plenty of practicality, the Model Y is still one of the best choices out there.
However, it’s also worth keeping an eye on the competition as more automakers begin to offer similar features at competitive prices. The EV market is evolving, and while Tesla has led the charge, others are quickly catching up.
Related Post
