Nearly 25% in 17 days.

That’s how far prices on late-model pre-owned Teslas fell at the outset of 2023 compared to their June 2022 peak, according to data from Edmunds.

After the automaker announced price cuts on Jan. 13, Edmunds examined, among other metrics, the impact on listing prices for used Teslas and the turn times of the cars on dealer lots.

Edmunds data shows that for pre-owned Tesla units from the 2020 or later model years, listing prices after 17 days of 2023 were down 24.5% from June 2022, which is when they peaked.

More specifically, used Teslas from these model years had a $76,626 average listing price back in June.

It’s at $58,657 in January.

The 24.5% listing price decline since June is also twice as steep as the overall decline (11.6%) for used vehicles from the same model years, Edmunds said.

As Auto Remarketing reported previously, the impact of the Tesla price cuts could hit the auction lane, too.

In its Jan. 17 Market Insights report, which examined auction activity for the week ending Jan. 14, Black Book said: “The big news heading into this week (of Jan. 17) will be what happens to used Tesla values after Tesla shocked us all with their announcement of price reductions, some models dropping as much as 20% last week.

“Used electric vehicle values were already feeling the pressure before this news of the price reduction,” the company said. “Values for EVs soared earlier last year, when fuel prices were high but have fallen hard recently as fuel prices have come back down and interest rates have gone up, making those higher MSRPs compared to their equivalent ICE vehicle harder to afford.”

Black Book is scheduled to release its next Market Insights report Tuesday, which would cover the week ending Saturday.

Impact to turn times

The price cuts Tesla made could also potentially impact turn times of its used models, which were already “lingering on dealer lots,” Edmunds said.

In June, turn times for used Teslas were at 24 days. In December, they came in at 39 days, which Edmunds said matched the industry average.

In a news release, analysts with Edmunds suggest the slower turn times have been driven by “a unique combination of factors driving down residual values and demand, including car flippers jumping into the market as used prices hit their peak, followed by a drop in used values and interest rate hikes, controversy surrounding Elon Musk’s Twitter acquisition, and incentives introduced by Tesla in November and December.”

And now with residual values of these cars being impacted, their turn times are likely to become even slower this month, Edmunds said.

Emphasizing that price cuts will impact various customers differently, Edmunds director of insights Ivan Drury said in the release: “For current Tesla owners who’ve seen thousands in residual value chopped off their investment, the best course of action is to keep the keys and wait for the market to shift. Eventually the value of your Tesla will normalize the longer it’s in your possession.”

Tesla appraisals

As it stands, the price cuts appear to have already had a big impact on current Tesla owners who may be looking to trade in their vehicles.

On Jan. 12, the day before the cuts, 0.8% of appraisals on Edmunds free online appraisal tool were for Teslas.

That jumped to 3.1% the following day.