Used Tesla prices are plummeting, with data indicating a significant drop in value compared to the previous year. According to iSeeCars data, used Tesla prices fell over 10% year-over-year in March. This decline is attributed to a growing backlash against CEO Elon Musk and his various endeavors, leading owners to sell their vehicles in increasing numbers.

The average price of a used Tesla experienced the largest drop of any car brand, with the Model S and Model Y vehicles collapsing by 17.2% and 13.1% respectively. The average price of a Model 3 is now just over $26,000. This is occurring even as the average price of used cars overall is slightly increasing, marking the first rise in two and a half years. The trend is fueled by global protests against Musk and his policies.

Data from Autotrader and Edmunds show a record number of Tesla listings and trade-ins, respectively, indicating a surge in owners looking to offload their vehicles. Some former Tesla owners have cited Musk's decisions, such as federal workforce reductions, as reasons for selling. Vandalism targeting Tesla vehicles has also played a role in the decision-making process for some owners.

While dropping used Tesla values present an opportunity for buyers seeking discounted EVs, they pose a challenge for long-term Tesla owners looking to sell their cars. Tesla investor Ross Gerber mentioned the difficulty in selling his old Tesla at a fair price, highlighting the financial hit current owners may face.

Tesla's struggles extend to new car sales, with underwhelming first-quarter deliveries and declining sales in Europe and China. The company is facing a "brand crisis tornado" due to Musk's political interventions and increasing competition from EV rivals. Wedbush Securities analyst Dan Ives suggests the company faces a “Code Red Situation” if Musk doesn’t leave his position with DOGE.

iSeeCars executive analyst Karl Brauer notes that Tesla prices have been dropping in both the new and used car markets for over two years. Price cuts on new Teslas have directly impacted used Tesla prices, driving them down rapidly. Data indicates the average price of a used Tesla fell more than 10% in March (to $31,421) compared with the same period last year. Tesla had four models in the top 20 used cars with the biggest year-over-year price drops. The Tesla Model S lost more value than any other used car over the past year (17.2%). Meanwhile, the Model Y dropped 13.1% to take fifth on the list, the Model 3 saw a 10.9% difference to be eighth on the list, and the Model X rounded landed at 17th with a 7.3% yearly price decrease.

The automaker has seen its value collapse recently, partly attributed to Musk’s close ties to President Donald Trump and Musk’s role as the head of the cost-and-job-cutting Department of Government Efficiency. That connection — and other controversial comments from Musk — have made Tesla a target for people looking to protest governmental politics. Nonviolent, anti-Tesla protests have popped up across the globe, while vandalism against the company’s vehicles and facilities has increased.

Tesla reported its worst quarterly sales in years; its 336,000 delivered units were well below Wall Street’s already low expectations. Data showed that the automaker’s share of California’s enormous EV market fell to 43.9% in the first quarter from 55.5% a year ago. And recently, Tesla quietly pulled options to buy its Model S and X EVs from its website in China. The Trump administration has said the CEO plans to leave the department by the end of May when Musk’s designation as a special government employee is set to expire. The automaker is set to report earnings Tuesday after the bell.