Marketplace Morning Report: "A Lot of People Are Buying Used EVs"

Release Date: April 22, 2025

Hosted by David Brancaccio, this episode of the Marketplace Morning Report delves into the rising trend of used electric vehicle (EV) purchases, examines the challenges faced by dealerships, explores advancements in EV battery technology, and highlights innovative programs in California’s public schools aimed at addressing enrollment and funding issues.

1. Tesla’s Financial Struggles and Market Position

David Brancaccio opens the episode by discussing Tesla’s upcoming report on sales and profits for the first quarter of 2025. Despite Tesla’s prominence in the EV market, the company’s stock has plummeted by 44% year-to-date. Brancaccio attributes this decline to concerns over CEO Elon Musk’s involvement with the Trump administration and the increasing competition in the EV sector.

"Tesla stock is down 44% year so far. So the prognosis for today is not good." [00:01]

2. Surge in Used EV Sales

Contrary to the challenges faced by new EV sales, the used EV market is experiencing significant growth. Sales of used electric vehicles have surged by 39% over the past year, according to Cox Automotive Marketplaces. This uptick is driving both interest and competition among used EV dealerships.

3. Inside Greenwave Electric Vehicles

Jesse Lohr of Greenwave Electric Vehicles in Northampton, New Hampshire, provides an on-the-ground perspective of the used EV market. His dealership primarily offers vehicles priced under $40,000, aiming to make EVs more accessible to a broader range of customers.

"Most of the vehicles at his dealership, Greenwave Electric Vehicles in Northampton, New Hampshire are under $40,000 and many are a good bit less." [00:40]

Mark Lore adds that the dealership’s inventory mainly consists of affordable models like Kia Niros, Tesla Model 3s, and Chevy Bolts, all priced under $25,000.

"You'll notice a lot of Kia Niro's, Tesla Model 3s, Chevy Bolts, more Chevy Bolts." [00:53]

4. Financial Challenges for Dealerships

Maintaining a diverse inventory of used EVs is financially taxing due to the high-interest rates on lines of credit used to purchase vehicles. Each car on the lot incurs daily costs, making rapid turnover essential for profitability.

"These cars eat hay at a rate of anywhere between 8 and $12 per day." [01:21]

5. Impact of Federal Tax Credits

The used EV market saw a significant boost in 2023, partly due to a federal tax credit for used EVs that buyers could receive upfront. However, this surge was temporary, peaking around the 2020 election, when many rushed to purchase EVs before the tax credit expired. Although the tax credit remains, recent weeks have seen a stabilization in sales.

"We all of a sudden got really busy with so many people saying, I want to get my EV before the tax credit goes away." [01:45]

6. Tariffs and Rising EV Prices

Concerns about potential tariffs have led to increased prices for both new and used EVs. These tariffs are already affecting wholesale prices, which are expected to trickle down to consumers at the retail level, posing additional challenges for dealerships and buyers alike.

"We've definitely heard from people that they're afraid of tariffs increasing the prices on new as well as used vehicles." [02:07]

7. Shifts in Inventory Strategy Due to Elon Musk’s Political Role

Jesse Lohr explains that while Tesla remains a significant part of his dealership’s inventory, the political activities of Elon Musk have influenced consumer demand. Following Musk’s prominent role in the Trump administration, the dealership experienced a surge in inquiries and consequently halted purchasing Teslas at auctions to manage inventory effectively.

"As of January, we stopped buying all Teslas at the auction because then we started getting, you know, three to five calls a day of people saying, how much will you give me for my 2021 Tesla?" [02:42]

Despite these challenges, some Teslas have been resold successfully, underscoring the brand’s continued appeal despite broader market difficulties.

8. Consumer Preferences and Charging Infrastructure

Dmitry Dragilev, a customer of Greenwave Electric Vehicles, shares his preference for Tesla primarily due to the brand’s extensive and reliable charging network rather than any allegiance to Elon Musk.

"The only reason I got the Tesla is because they have the network for the chargers." [03:16]

This highlights the importance of infrastructure in consumer decision-making when it comes to EV purchases.

9. Advancements in EV Battery Technology

Shifting focus globally, the episode highlights CATL of China, the world's largest EV battery manufacturer. CATL is advancing sodium-ion battery technology, which promises several benefits over traditional lithium-ion batteries:

• Cost-Effectiveness: Sodium is more abundant and cheaper than lithium.
• Performance: Sodium-ion batteries perform better in cold climates.
• Charging Efficiency: Capable of delivering 300 miles of range with a five-minute charge.

These advancements could potentially lower the cost of EVs and make them more accessible to a wider audience.

10. Innovative Programs in California’s Public Schools

In a segment addressing educational and economic challenges, the episode covers a unique initiative by the Placentia-Yorba Linda Unified School District in Orange County, California. Facing declining enrollment and budget constraints, Superintendent Alex Chernis developed the Universal Sports Institute—a high-tech gym that offers state-of-the-art training equipment and data-driven athletic programs to attract students and secure additional funding.

"Like many districts in California, we've been struggling with enrollment." [05:44]

The program includes features such as:

• High-Tech Gym Facilities: Equipped with machines capable of performing hundreds of exercises and pushing data to the cloud for performance metrics.

  "All that data gets pushed up into the cloud so we can measure metrics for each kid." [04:53]

• Recovery Centers: Plush recliners with red light therapy and compression boots for athlete recovery.

  "It's got plush recliners equipped with red light therapy." [04:59]

• Holistic Training Programs: Combining professional training with educational curricula for homeschooled students.

The initiative aims to double its enrollment in the coming year to enhance sustainability and secure more state funding. However, it faces scrutiny from some school board members concerned about the program’s cost amidst a multimillion-dollar budget gap.

Conclusion

David Brancaccio concludes the episode by encapsulating the dynamic shifts within the used EV market, the impact of political and economic factors on consumer behavior, and innovative responses by businesses and educational institutions to current challenges. The episode provides a comprehensive overview of how the EV landscape is evolving amidst broader economic and technological changes.

Note: The promotional segment for the "Financially Inclined" podcast was omitted in accordance with the summary guidelines.