Hyperdrive

Tesla’s Steep Price Cuts Help Get the Used EV Market Humming

Sales jumped 70% in the first half of this year as US car buyers seized on more affordable options.

Customers are increasingly buying used electric vehicles amid falling prices. 

Photographer: Amy Osborne/Bloomberg
Lock
This article is for subscribers only.

Since early last year, the cars rolling off Tesla Inc.’s California assembly lines have been selling for steadily lower prices. This has had a happy knock-on effect on a car lot just across the freeway from the company’s San Francisco Bay area factory.

CarMax Inc.’s superstore in Fremont, California, has seen a stream of shoppers more willing than ever to kick the tires on an electric vehicle. While Tesla’s price cuts aren’t all that’s driving the foot traffic — the range of pre-owned plug-in models to choose from is steadily broadening — Elon Musk’s early dominance of the market for new EVs has translated to serious sway over used-car dynamics.