Two underestimated challenges for Tesla's sales in Europe & USA

Have you noticed that used Teslas are suddenly appearing at bargain prices? This exact Tesla depreciation could develop into a serious sales obstacle. Because those who pay extra for their next vehicle purchase hesitate to order new again – and prefer to opt for the cheaper used one. We show why residual values and the booming second-hand market are putting double pressure on Tesla's new car business.

1 - Rapid Depreciation Slows Repeat Buyers

Financing Trap: If the residual value drops faster than the outstanding loan, many have no choice but to drive the current Tesla longer.
Brand Loyalty Suffers: Low trade-in offers frustrate loyal customers who would otherwise switch every 3-5 years.
Domino Effect in Company Fleets: Leasing companies calculate higher write-offs – this reduces orders in the lucrative company car segment.

Practical Example

In Sweden, the used market recorded a price drop of up to 25% within a year in 2024 according to Dagens Nyheter – a record value among premium BEVs.

2 - Used Car Boom as Internal Competition

Large Supply of Young Vehicles: Returns from leasing and fleets flood online marketplaces.
Attractive Prices: Many 2-3 year old Model 3/Model Y are significantly cheaper than a new base model.
Buyer Migration: Prospective buyers who would have bought new in 2020 now opt for the well-equipped used one.

Example Calculation

A Model 3 LR from 2022 costs less than 30,000 € in Luxembourg after manufacturer bonus and state premium, while the new Highland model starts at around 40,000 €.

3 - What Tesla Can Do About It

Software Upselling Instead of Hardware Upgrade

Over-the-Air features like Acceleration Boost or FSD Subscription increase the utility of existing vehicles and ensure recurring revenue – without having to sell new hardware.

Targeted Trade-In Programs

Guaranteed minimum residual values or exchange premiums can motivate customers to place another order.

Model Offensive & Service Plus

A facelift alone is not enough. A broader portfolio (e.g., Model 2) and improved after-sales support strengthen trust and reduce price depreciation.

Conclusion

The Tesla depreciation and the abundant used car supply are silent brakes on new car sales. However, with clever trade-in strategies, subscription services, and fresh models, Tesla can counteract this – and regain the loyalty of its community.