More than half of the Teslas traded this year were swapped for gasoline cars – but there’s an unexpected reason for the switch

NEW research shows that more than half of Teslas have been traded for gas vehicles this year.

Surprisingly, this number has decreased by 19% since 2019, when 71% of Tesla cars were switched to gas vehicles.

5

So far in 2024, 51% of Teslas have traded in for gasoline cars and 10% have traded in for hybrid cars, according to Edmunds.

And, in a shocking turn of events, only 32% of Teslas have been traded in for another electric vehicle.

The number of exchanges has decreased significantly in recent years, but there has been a surprising change.

When Tesla owners trade in their vehicles, they opt for an electric vehicle from a traditional automaker.

Traditional automakers, including historic brands like Ford, Chrysler and Buick, have recently begun to enter the electric vehicle industry.

“Five years ago, traditional automakers simply didn’t have vehicles that could compete with Teslas,” Edmunds reported.

“In fact, the Tesla Model 3 won Edmunds’ best-rated electric car award in 2020, 2021 and 2022, only to be removed in 2023.”

However, in recent years, traditional automakers have been stepping up their game while the Tesla Model 3 remains the same, Edmunds said.

As traditional automakers opt for the North American charging standard, Edmunds expects this trend to continue.

Industry giants such as BMW, General Motors, Honda, Nissan, Subaru, Mercedes-Benz, Kia, Lexus and Toyota have started to adopt Tesla’s NACS charging port.

Many automakers have committed to launching vehicles with integrated NACS by 2025 or 2026.

Right now, the only “remaining practical advantage” a Tesla has over other electric vehicles is its access to the Supercharger network.

The Tesla Supercharger network is the largest network of its kind, with more than 50,000 stations located in parking lots, grocery stores and on major routes near other convenient amenities around the world.

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?

In January, many electric vehicle manufacturers reported sluggish demand. Rueters said there are a few valid reasons for the slowdown in demand:

1. High initial costs. Many automakers, including Tesla, Hyundai and Ford, have carried out “price cuts” on their flagship electric vehicles to attract new buyers, even as demand remains sluggish.
2. Higher insurance costs. Some insurers cite fire risks, high battery replacement costs and greater vehicle weight as reasons for higher premiums.
3. Loaded anxiety. A large percentage of people remain afraid of finding themselves in a situation where they will not be able to charge if they run out of battery due to a lack of infrastructure.
4. Range anxiety. In many cases, EVs still do not have the range and infrastructure of gas-powered vehicles.
5. Poor performance at extreme temperatures. Reduced range in extremely hot or cold climates makes potential buyers wary.

Source: Reuters

Tesla’s app allows drivers to view Supercharger availability and location and monitor a car’s charging status.

It also notifies users when vehicle charging has finished.

Despite its popularity and “cool factor”, Tesla now also has more competition than ever before.

In recent years, Tesla’s Model 3 has been ranked as Edmunds’ highest-rated electric car.

In 2024, that honor goes to the Hyundai Ioniq 6 – which has a starting MSRP of around $2,000 less than the Model 3.

Electric versus gas vehicles

Pros and cons of electric vehicles versus gasoline-powered vehicles

EV PROS:

• Convenient (when charging at home)
• Cheapest (depending on the 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 make and model)

EV CONS:

• Higher initial cost
• Higher Insurance Rates
• More frequent tire and brake replacement intervals
• Higher tare weight (thus causing faster wear on crucial parts)
• Low resale value
• High depreciation rates
• Lack of charging infrastructure
• Unreliable public loading (related: slow loading times)
• Poor performance in winter and summer
• Lack of clean energy alternatives means more “dirty energy” from coal and nuclear sources
• Range anxiety

PROS OF GAS:

• Highly developed refueling infrastructure
• Fast replenishment
• Cheapest insurance rates depending on make, model and configuration
• Established repair industry
• Lower initial cost
• Greater range before refueling, especially with hybrids
• Many manufacturers produce engines with almost fewer emissions
• Cheaper refueling depending on location

CONS OF GAS:

• Finite resource (related: heavy dependence on oil)
• Carbon emissions/greenhouse gases
• Higher repair costs
• Higher insurance rates depending on make, model and configuration
• Varied costs at the pump depending on the state, city and municipality

Source: Driver, Perch Energy, Automatic Week

Edmunds also found that while trade-ins for hybrid vehicles were down, former Tesla owners were beginning to trade in their vehicles for plug-in hybrids at slightly higher rates.

Normally, you would expect consumers to trade in their gas vehicles for a plug-in hybrid electric car, but data shows that the trend is actually reversed.

Switches from Tesla to PHEVs are happening at three times the rate of the overall market, according to Edmunds.

And as more traditional automakers continue to move to electric vehicles — and offer them at a significantly lower cost than the Tesla — cash-strapped, eco-conscious consumers will likely continue to trade in their Teslas, or will completely forego purchasing one.

Still, as of July 2024, one in five electric cars is a Tesla, and despite its price and growing competition, it will take some time for drivers and electric vehicle enthusiasts to shift their focus elsewhere.

5

5

5