Tesla's used car prices are rapidly declining in Chicago

Tesla's used car market is showing signs of decline in Chicago and across the U.S. in March 2025. There are reports of more Tesla owners trading in their cars, partly due to backlash against CEO Elon Musk's political actions under the current administration. In the Chicago area, the inventory of used Teslas for sale has increased by 1% compared to last year. This contrasts with a 6.3% drop in overall used car inventory. However, prices for used Teslas are falling quickly, with a drop of 13.6% year-over-year. The demand for these vehicles is decreasing as well. Tesla has faced significant political scrutiny recently. Incidents of vandalism and protests against the brand have occurred, making its vehicles targets of public anger. Despite recent efforts to support Tesla, such as showcasing cars at the White House, sales of new Teslas have also dropped, indicating a potential brand crisis. Tesla's market share in electric vehicles has decreased from nearly 80% in 2019 to about 45% last year. New EV sales reached a record of 1.3 million units in 2024, but Tesla faced the largest sales decline among manufacturers. In the used market, nearly 700 Teslas are available for sale in Chicago, with prices for models like the Model 3 and Model Y falling significantly. The average price for a Model 3 is now around $25,831, down 16.7% in just one year. Dealerships are focusing on acquiring different brands of EVs due to the declining interest in Teslas. Concerns continue to grow about Tesla's future, as the company's stock has dropped by about 50% since December. Analysts are urging Musk to reconsider his focus on politics to stabilize the company’s position in the market.