Reports have emerged that used Tesla vehicle prices in the United States are falling sharply. Elon Musk, the Chief Executive Officer (CEO) of Tesla, is experiencing backlash due to political actions, and there have been multiple acts of vandalism against Tesla vehicles that seem to have impacted this situation.
CNN reported on the 20th (local time) that the used car market for Tesla is collapsing as Musk's role in the government expands. According to the online car trading site Cars.com, Tesla vehicle prices in the used car market in March fell to an all-time low.
Search volume for used Teslas also decreased by 16% over the past month, in contrast to a 28% increase in searches for used cars from other companies over the past year. The online used car trading site Kagurus also stated that the price decline rate for used Tesla vehicles is more than twice the average for all used cars. Among models, the Cybertruck had the highest decline rate.
As Musk emerged as a close associate of President Donald Trump, Tesla garnered public attention, and its stock price initially surged but has plummeted this year.
In addition to the backlash against Musk, fundamentally, Tesla's poor performance has affected the situation. Tesla experienced its first-ever decline in global sales last year and is suffering from fierce competition in China and sluggish sales in Europe amidst rivalry from competitors.
President Trump even held a promotional event to support Tesla, and Minister Howard Rutnik of the U.S. Department of Commerce appeared on the broadcast that day, praising Musk as "the best leader" and stating, "I can't believe Tesla's stock is this cheap," recommending stock purchases. However, this does not seem to have elicited a significant market response.