The number of secondhand Model 3s on the used car market has spiked dramatically after Tesla made its electric crossover, the Model Y, available to order last Friday.
Tesla surprised many in Australia by opening up their Tesla Model Y orders page after a couple of years of delays. Few in the industry were expecting it to go on sale so soon after recent reports on Shanghai lockdowns.
Orders for this SUV have far exceeded everyone’s expectations, including Tesla themselves, with CEO Elon Musk confirming his surprise earlier this week. This got me thinking of what’s driven these orders?
One set of these buyers stood out. Their Model Y orders correlated with new data on the used EV market. So who are these buyers and what’s happening in the Australian used EV?
Used Tesla EV listings up by 77% in under one week
New data from carloop today shows that used Tesla listings have increased by 77% in under one week since the launch of Model Y last Friday. The trend is even starker when compared to used Tesla EVs back in January of this year.
Over that time, it’s been a 234% increase in used Teslas that have ended up on the used EV market. So how is this data related to buyers of Model Ys?
Offloading of Tesla Model 3 shows Tesla customer satisfaction
From the conversations that I have been having with folks that ordered a Model Y in the first week, many are upgrading to a family SUV and the majority of them currently drive a Tesla Model 3.
They intend on selling their current Model 3 between now and when the Model Y arrives. Some of them have already listed their current cars for sale in anticipation of selling them before their new car arrives. This is supported by the sharp rise in used Model 3 listings.
Are more used Tesla Model 3s today a good thing for EV uptake?
The rhetoric that has been put out there around more new EVs will lead to more affordable used EVs and further increase the uptake has some merit.
Looking at the used price data and trends of the used Tesla Model 3s today shows that the prices being asked by these sellers in most cases are far above what they had paid when they purchased their cars new.
This is particularly so in the case of Model 3s that were purchased in the second half of 2021, where many in Victoria and New South Wales were eligible for a state subsidy of $3,000.
That’s not a great thing for the affordability of EVs for the moment – and it indicates demand for EVs still exceeds supply – but there is optimism that the market will settle.
Used Tesla EV numbers expected to rise
This market will eventually settle as Tesla brings more cars into Australia in Quarter 3 of 2022 and more Model 3 owners are expected to list their cars on the used EV market as the Model Y deliveries get closer.
I am a big advocate for more affordable EVs and even though the Tesla Model Y launch does not seem to have bought affordable Tesla Model 3s onto the market just yet, it’s only a matter of time for it to happen.
This shift will be great for EV uptake in Australia and allow more Australians to make the switch over the next 12 months.
Riz is the founder of carloop based in Melbourne, specialising in Australian EV data, insight reports and trends. He is a mechanical engineer who spent the first 7 years of his career building transport infrastructure before starting carloop. He has a passion for cars, particularly EVs and wants to help reduce transport emissions in Australia. He currently drives a red Tesla Model 3.