A new market analysis is revealing a dramatic split in the U.S. used electric vehicle market. Since the federal $4,000 used EV tax credit expired on September 30, used Tesla prices have increased 4.3%, while nearly every other used EV brand has declined an average of 3.6%.
The data, based on iSeeCars’ review of more than 1.7 million used vehicles, suggests a two-tier EV market is forming — one where Tesla maintains pricing strength while competing brands struggle to hold value.
A Two-Speed Used EV Market Emerges
At first glance, the overall used EV market appears stable. Average used EV prices are up 3.5% since September. But that headline figure hides what’s really happening.
Tesla still dominates used EV sales volume in the U.S. Its 4.3% price increase — from $30,040 to $31,329 — is heavily influencing the overall average.
Remove Tesla and the Porsche Taycan from the equation, and the broader used EV market tells a very different story. Prices for all other electric vehicles fell 3.6%, dropping from $24,629 to $23,738.
That creates an almost 8-percentage-point gap in price trajectory between Tesla and its competitors.
Model-Level Breakdown: Tesla Up, Others Down
The divide becomes even clearer when looking at individual models.
| Used EV Models Pricing – iSeeCars Study | |||
| Model | Avg Price Sept. 2025 | Avg Price Jan. 2026 | % Change |
| Hyundai Kona Electric | $21,020 | $19,678 | -6.4% |
| Volkswagen ID.4 | $23,307 | $21,860 | -6.2% |
| Kia Niro EV | $21,128 | $20,024 | -5.2% |
| Ford Mustang Mach-E | $30,575 | $29,014 | -5.1% |
| Nissan LEAF | $16,360 | $15,606 | -4.6% |
| Polestar 2 | $26,006 | $25,508 | -1.9% |
| Tesla Model Y | $29,603 | $29,989 | +1.3% |
| Tesla Model 3 | $25,061 | $25,701 | +2.6% |
| EV Average | $29,637 | $30,666 | +3.5% |
| Porsche Taycan | $74,465 | $77,552 | +4.1% |
| Tesla Model S | $47,226 | $51,249 | +8.5% |
| Tesla Model X | $51,973 | $57,306 | +10.3% |
The strongest rebounds are coming from the higher-end Model S and Model X — a notable shift after a year of steep depreciation across the Tesla lineup.
A Reversal After a Brutal 2025
Earlier in 2025, used Tesla prices were falling rapidly. At one point, they dipped below the average used car price in the U.S., driven by price cuts on new vehicles and broader brand backlash.
What we’re seeing now appears to be a market correction. After an aggressive sell-off phase, used Tesla values seem to have found a floor.
According to iSeeCars Executive Analyst Karl Brauer, consumer interest in used EVs shifted noticeably after the federal tax credit expired — but not evenly across brands.
The data suggests that while overall used EV demand softened, Tesla vehicles retained stronger buyer confidence.
Used EV Market Share Falls 20%
The pricing divergence aligns with a sharp contraction in used EV market share.
In September 2025, electric vehicles represented 3.5% of 1- to 5-year-old used cars sold. By January 2026, that number had fallen to 2.8% — a 20% drop in just four months.
For comparison, during the same September-to-January window one year earlier, used EV market share increased 19.5%, rising from 1.8% to 2.1%.
That’s nearly a 40-percentage-point swing in trajectory, closely aligned with the expiration of the $4,000 used EV tax credit.
Why Tesla Prices Are Holding Up
Several factors may be supporting Tesla’s resilience in the used market:
- Strong brand recognition and charging network advantage
- Competitive pricing relative to new EV alternatives
- High software integration and over-the-air update capability
- Limited new supply in certain trims
The Model S and Model X, in particular, are benefiting from supply dynamics. With production ending and no new units entering the market, total fleet size will gradually decline, supporting residual values over time.
What This Means for Buyers and Sellers
For Tesla owners, the worst of the depreciation cycle may be over. After a year of unusually steep value losses, pricing appears to be stabilizing — and in some cases, rebounding sharply.
For buyers, the story depends on brand preference. Shoppers considering non-Tesla EVs may find increasing discounts and softer resale values, while Tesla shoppers could face firmer pricing as demand stabilizes.
The broader takeaway is clear: the end of federal incentives reshaped the used EV market, but not uniformly. Tesla has emerged with relative pricing power, while much of the rest of the segment continues adjusting to post-subsidy reality.
As 2026 unfolds, used EV pricing trends will likely depend on new vehicle incentives, interest rates, and consumer demand. At this stage, Tesla stands out as the only major brand posting price gains, while the broader used EV segment remains under pressure.
