NEW research shows that over half of Teslas have been traded for gas vehicles this year.
Shockingly, that number has decreased by 19% since 2019, when 71% of Tesla cars were traded for gas vehicles.
So far, in 2024, 51% of Teslas were traded in for gas cars and 10% were traded in for hybrid cars, according to Edmunds.
And, in a shocking twist, only 32% of Teslas were traded in for another electric vehicle.
The number of trade-ins has decreased significantly in the past few years, but there’s been one surprising change.
When Tesla owners trade in their vehicles, they opt for an electric vehicle from a legacy automaker.
Legacy automakers, including historic brands such as Ford, Chrysler, and Buick, have recently begun entering the electric vehicle industry.
“Five years ago, legacy automakers just didn’t have vehicles that could compete with Teslas,” Edmunds reported.
“In fact, the Tesla Model 3 won Edmunds Top Rated Electric Car in 2020, 2021 and 2022, only being unseated in 2023.”
However, over the past few years, the legacy automakers have been stepping up their game while the Tesla Model 3 has remained the same, Edmunds claimed.
As legacy automakers opt into the North American Charging Standard, Edmunds expects this trend to continue.
Industry giants like BMW, General Motors, Honda, Nissan, Subaru, Mercedes-Benz, Kia, Lexus, and Toyota have all begun to embrace Tesla’s NACS charge port.
Many automakers have pledged to roll out vehicles with NACS built in by 2025 or 2026.
Right now, the only “remaining practical advantage” of a Tesla over other electric vehicles is its access to the Supercharger network.
Tesla’s Supercharger network is the largest network of its kind, with over 50,000 stations located in parking lots, grocery stores, and on major routes near other convenient amenities worldwide.
Superchargers are available 24 hours a day and can add 200 miles of range in less than 20 minutes, depending on the station’s charging speed.
Why aren't people buying EVs?
As January, many EV makers reported slow demand. Rueters said there are a few valid reasons for a slow in demand:
- High initial costs. Many automakers, like Tesla, Hyundai, and Ford have conducted “price slashes” on their flagship EVs to attract new buyers, though demand remains slow.
- Higher insurance costs. Some insurance companies cite fire risks, high costs of battery replacement, and higher vehicle weight as reasons for higher premiums.
- Charging anxiety. A large percentage of people remain fearful of being in a situation where they won’t be able to charge if they run out of battery due to a lack of infrastructure.
- Range anxiety. In many instances, EVs still don’t have the range and infrastructure of gas-powered vehicles.
- Poor performance in extreme temperatures. Reduced range in extremely hot or cold weather makes potential buyers wary.
Source: Reuters
Tesla’s app allows drivers to view Supercharger availability and locations and monitors a car’s charge status.
It also notifies users when their vehicle is done charging.
Despite their popularity and “cool factor,” Tesla now also has more competition than ever before.
In the last few years, Tesla’s Model 3 was rated as Edmunds Top Rated Electric Car.
In 2024, that honor went to the Hyundai Ioniq 6 – which has a starting MSRP of around $2,000 less than the Model 3.
Electric vehicles vs gas
Pros and cons of EVs vs gasoline-powered vehicles
EV PROS:
- Convenient (when charging at home)
- Cheaper (depending on state or city)
- Cheaper maintenance, due to lack of mechanical parts
- Great for commuting
- Reduced CO2 emissions
- Federal and state tax incentives
- More performance (speed, handling – depending on the make and model)
EV CONS:
- Higher initial cost
- Higher insurance rates
- More frequent tire and brake replacement intervals
- Higher curb weight (thus causing more rapid wear on crucial parts)
- Low resale value
- High depreciation rates
- Lack of charging infrastructure
- Unreliable public charging (related: slow charging times)
- Poor winter and summer performance
- Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources
- Range anxiety
GAS PROS:
- Highly developed refueling infrastructure
- Fast refueling
- Cheaper insurance rates, depending on make, model, and configuration
- Established repair industry
- Lower initial cost
- Higher range before refueling, especially with hybrids
- Many manufacturers produce nearly emission-less engines
- Cheaper refueling, depending on the location
GAS CONS:
- Finite resource (related: heavy dependence on petroleum)
- Carbon emissions/greenhouse gases
- Higher repair costs
- Higher insurance rates, depending on make, model, and configuration
- Varying costs at the pump, depending on state, city, and county
Source: Car & Driver, Perch Energy, AutoWeek
Edmunds also found that while trade-ins for hybrid vehicles declined, former Tesla owners were beginning to trade in their vehicles for plug-in hybrids at slightly higher rates.
Typically, you would expect consumers to trade their gas vehicles for a plug-in hybrid electric car, but data shows the trend is actually backward.
Tesla trade-ins for PHEVs are happening at three times the rate of the market as a whole, according to Edmunds.
And, as more legacy automakers continue to shift towards electric vehicles – and offer them at a significantly lower cost than Tesla – cash-strapped, eco-conscious consumers will likely continue to trade in their Teslas, or forgo purchasing one altogether.
Still, as of July 2024, one in five electric cars is a Tesla, and despite its price point and increasing competition, it will take time for drivers and EV enthusiasts alike to shift their focus elsewhere.
