Following the expiration of the $7,500 federal EV tax credit in September 2025, the used car market has shown mixed dynamics. Research by iSeeCars has revealed an interesting paradox.
The Contrast Between Tesla and the Rest
While the value of most used electric vehicles fell by an average of 3.6%, prices for used Tesla cars, on the contrary, increased by 4.3%. This led to an overall average price increase of 3.5% for used EVs, creating a distorted picture of the situation. If Tesla is excluded from the calculations, the picture becomes completely different: the average price of other used EVs fell from $24,629 to $23,738. For comparison, the value of internal combustion engine (ICE) vehicles decreased by 2%.
Excluding Tesla from the equation shows the true picture: other electric vehicles are losing value.
Declining Market Share
The study also recorded a decrease in the market share of used electric vehicles. Between September 2025 and January 2026, this share fell by 20% – from 3.5% to 2.8%. This indicates a cooling of demand among mass-market buyers, who are likely evaluating factors such as initial price, charging availability, and range more carefully than early technology adopters.
Price Dynamics by Model
Analysis of individual models confirms the overall trend. Affordable electric vehicles such as the Hyundai Kona Electric, Volkswagen ID.4, Kia Niro EV, and Nissan Leaf lost between 4.6% and 6.4% in value. Price increases were noted only for the Tesla Model 3, Model Y, Model S, Model X, and the Porsche Taycan. The latter became the only non-Tesla electric vehicle that became more expensive.
The Situation with New Cars
A similar picture is observed in the new electric vehicle market (excluding Tesla, for which data is unavailable). The average price of new EVs fell by 2.3%, while prices for new ICE vehicles rose by 2.5%. Manufacturers are trying to compensate for the loss of the tax credit with traditional discounts. For example, new Hyundai Ioniq 5 and Chevrolet Equinox EVs became cheaper by more than 8%. However, the drop in EV sales after the cancellation of credits indicates that discounts alone are not enough to stimulate demand.
Detailed Price Statistics
Average prices for used electric vehicles (1-5 years old):
Average prices for new electric vehicles (without Tesla):
- Hyundai IONIQ 5: $52,273 → $45,068 (-13.8%)
- Ford F-150 Lightning: $70,482 → $65,722 (-6.8%)
- Lucid Air: $91,479 → $96,256 (+5.2%)
- Overall average (EVs*): $63,327 → $61,860 (-2.3%)
The obtained data clearly points to a split in the electric vehicle market. The resilience of the Tesla brand and premium models like the Porsche Taycan contrasts with the significant drop in value of most affordable models. This may be a sign that consumers are beginning to differentiate electric vehicles not only by the type of powertrain but also by long-term cost of ownership, brand reputation, and service network. In other words, the market’s transition from early adoption to mass implementation requires manufacturers to offer not just technology, but a compelling proposition of value and long-term reliability, which not all are currently managing to achieve.