Prices for used Teslas jump 6% in just two weeks to $65,000
Tesla's electric vehicles can move fast — but prices for used models may be moving even faster.
The cost of a used Tesla jumped about 6% in the past two weeks, to about $65,000 as of March 20, according to CoPilot, which tracks prices at car dealerships nationwide. Newer used models — those just one- to three-years old — are averaging around $70,000, CoPilot also reported.
The price increases for old Teslas come as prices for brand-new Teslas have risen as well. And the average price of all used cars — both gas and electric — has jumped a stunning 41% in the past year, roughly $29,000, according to Edmunds.
Tesla quietly raised the price of its new vehicles by thousands of dollars, earlier this month, after CEO Elon Musk tweeted that the company is "seeing significant recent inflation pressure in raw materials and logistics." Tesla's Model X now costs $114,900 — a jump of more than $10,000. The Model S price has risen by $5,000, to $99,990; the Model 3 Performance price rose by $3,000, to $61,990; and the Model Y price rose by $4,000, to $62,990.
The most recent Tesla price hikes are between 3% and 5% in the U.S. and China, Dan Levy, a Credit Suisse analyst, said in a research note.
Aluminum, nickel and palladium are part of the raw materials that Tesla uses to build its vehicles. Aluminum, nickel and palladium help make catalytic converters, air conditioner condensers and other essential car parts. Nickel is used to make the batteries found in Tesla's Model Y.
The price increases likely won't torpedo the demand for Tesla vehicles, Sam Fiorani of AutoForecast Solutions told Yahoo Finance. That's in part because Tesla is the world's largest electric vehicle producer with a stock market value of $1 trillion.
Fast-climbing gas prices are clearly driving up consumer interest in buying an electric or hybrid car, CoPilot CEO Pat Ryan said. And rising Tesla prices are, in some ways, just a byproduct of how much electric vehicles are in demand, he said.
"Prices are now peaking at $65,000 and supply has dipped to record lows, making it much more challenging for consumers in the market for an EV," Ryan told CBS MoneyWatch. "Across the board, the market has become increasingly competitive for folks looking to convert from a gas guzzler."
Automotive industry experts said it's important to watch the price of electric vehicles as the U.S. tries to loosen its dependency on fossil fuels and gas-powered cars. Charging stations are sprouting up nationwide to encourage consumers to buy electric cars, but price hikes like the ones from Tesla could put those vehicles financially out of reach of the middle class, experts said.