Used-car market gives Tesla reach far beyond Calif.
Since its debut, more than 45 percent of new-car sales for the Tesla Model S have come from California, according to data from Polk and Edmunds.com.
But on the used-car side, the Golden State’s share is much smaller — in fact, it’s just over 30 percent.
States like Florida, Washington and Texas have poached pieces of the pie and started to close the gap, giving the automaker a broader reach on the pre-owned side. And it’s happening at an accelerated pace.
Edmunds uncovered this through an analysis of registration data of the more than 1,600 pre-owned Model S vehicles ever sold in the U.S.
“It’s clear that the concentration of demand for Tesla is spreading beyond California’s borders to other states on the secondary market,” said Jessica Caldwell, director of industry analysis at Edmunds. “While it's not uncommon to see used luxury vehicles travel out of large flagship hubs, it is unusual to see it happen to this high of a degree.”
Case in point, the data provided below by Edmunds and Polk:
Used Tesla Model S Market Share: Top 10 States*
Rank State Used New Difference (percentage pts)
1 CALIFORNIA 30.5% 45.2% -14.7%
2 FLORIDA 11.2% 7.3% 3.9%
3 WASHINGTON 8.9% 4.6% 4.3%
4 TEXAS 8.3% 5.8% 2.5%
5 NEW JERSEY 5.5% 3.3% 2.3%
6 ARIZONA 4.0% 1.9% 2.1%
7 NEVADA 2.6% 1.0% 1.6%
8 NEW YORK 2.5% 3.6% -1.1%
9 OHIO 2.5% 1.1% 1.3%
10 ILLINOIS 2.4% 4.3% -1.9%
*Data for All Tesla Registrations Since Model S Debut
Source: Polk, Edmunds.com
While California loses nearly 15 percentage points of market share in the used-car market, states such as Washington, Arizona, Ohio and Nevada have roughly twice as much Model S market share on the used-car side as they do on the new-car side.
Here’s the icing on the cake: Edmunds found more used Model S registrations in Seattle this year than in San Francisco, the market in which Tesla is headquartered.
But the broadened scope of used Tesla Model S goes beyond geographical measures. Take the salary range of buyers, for instance.
Folks making less than $100,000 comprised just a quarter of new Model S buyers. However, more than a third (36 percent) of used Model S buyers fell into this income bucket, Edmunds noted.
Age comparisons revealed similar results.
Only 6 percent of new Model S buyers were millennials; 10 percent of used Model S buyers were Generation Y.
“The used Model S data proves that with a more attainable price tag, there is demand for the vehicle from a more diverse customer set,” Caldwell said. “A wide-ranging buyer base is essential for a brand like Tesla that hopes to grow with mainstream shoppers.
“These findings offer encouragement for Tesla as it prepares to make its biggest move into the mass market with the upcoming Model 3.”