Elon Musk Unfazed By Tesla Resale Value Slide As Analysts See Buyers Flocking To Ford, GM: 'It Will Affect Them Over Time'

Despite a 30% year-over-year decrease in the resale value of used Tesla Inc. TSLA vehicles, CEO Elon Musk appears unfazed. However, this trend could potentially drive buyers toward competitors like Ford and GM, analysts told Business Insider.

Musk’s Indifference Amid Falling Resale Values: As the EV market grows more competitive, Tesla’s dominance could be threatened by these falling resale values. “They see the writing on the wall, that there’s this major proliferation of EVs hitting the market,” said Liz Najman, Recurrent lead researcher.

Despite this, Tesla remains the market leader, breaking quarterly production and delivery records while also reducing its prices.

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Driving Buyers to Competitors: However, industry experts believe that Tesla’s current challenges could intensify over time. “It will affect them over time,” said Stephen Beck, managing partner at consultancy cg42.

He added that future EV customers might opt to lease rather than buy, and the lack of a refresh or redesign could impact Tesla’s appeal, potentially driving buyers towards competitors like Ford Motor F and General Motors Co GM.

Impacting the Used EV Market: Despite these challenges, Tesla’s pricing strategy is making the EV market more affordable for mainstream buyers, especially in the used EV space.

“Even at the risk of alienating loyal drivers or people who bought a Tesla in 2021 or 2022, there’s a lot of ground to cover by lowering prices and making things more affordable for new drivers,” Najman said.

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