Used electric vehicle (EV) sales are surging, a trend Tesla aggressively fueled through a price war defending its market share. This aggressive discounting, however, is also driving down the value of used EVs, according to Jessica Caldwell of Edmunds. Analysts suggest this flood of discounted models is acting as a 'gateway' for potential buyers, especially as average US gas prices soared past $4 a gallon this week for the first time since 2022, coinciding with near-record new car prices and sluggish overall sales in the first quarter.

Concerns over affordability and inadequate charging infrastructure in the large country remain significant barriers for mainstream EV adoption, despite GM recently noting 'some peaking of interest' in EVs among buyers.