A used Tesla costs more than a new one in China, CarNewsChina reports, adding that the market is upside down. Demand for Teslas is high while supply of new ones just can’t keep up.
The article noted that the used car market in China has developed pretty quickly thanks to the chip shortage, supply line challenges, and Covid-related issues. Last year, the number of used cars sold rose 22.6% compared with the previous year’s numbers and reached 17.5 million second-hand vehicles.
The cost of used vehicles is also increasing. In the case of Tesla, dealers listed a used Model Y $2,700 higher than a new one from Tesla — and the vehicles had the same trim.
Employees at a dealership in Shanghai told Chinese reporters that they bought the two rear-wheel-drive Model Ys from Giga Shanghai in September 2021 for 276,000 RMB, which is ~$43,575. The cost of a new rear-wheel-drive Tesla Model Y has risen since then to $47,655. For the dealer, which is reselling the vehicle, this may seem like an investment.
CarNewsChina added that Chinese consumers are waiting in line for up to six months to buy a new Model Y. This has caused the cost of a used one to rise over $43,350 or 300,000 RMB at many Chinese dealerships. CarNewsChina has even found a rear-wheel-drive Tesla Model Y with a standard battery that crossed over the $50,000 mark.
For China, the used car market has been growing since 2019, as has the new energy vehicle market. Last month, the value retention rate of new energy vehicles rose to 49.5%, and this was in the midst of reductions of EV subsidies in China, chip shortages, and supply challenges.
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