Tesla Model 3 and Model Y stand out in Spring 2024 CarMax EV Consumer report

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CarMax’s Spring 2024 Electric Vehicle Consumer Report has revealed that Tesla’s two most popular vehicles, the Model Y crossover and Model 3 sedan, are among the most popular EVs in the United States’ second-hand vehicle market. The Nissan LEAF, a veteran in the EV sector, also proved popular. 

CarMax is one of the United States’ largest retailer of used automobiles. Thus, the company’s data provides valuable insight into the country’s used vehicle market. As per CarMax in its report, consumer interest in used EVs has seen a notable rise since 2021. From the start of 2021 to February 2024, monthly search volumes for electric vehicles in the US saw a 177% increase. 

While the Tesla Model 3, Tesla Model Y, and Nissan LEAF maintained their place as the top three most popular used electric cars in CarMax, the second-hand vehicle retailer observed that the vehicles saw a shift in pricing compared to the previous year. Sales data from December 2023 to February 2024 currently show that the vehicles now cost $3,000 to $5,000 less on average. 

Interestingly enough, the Model 3 seems to be a very popular used electric car. While the Tesla Model Y was last year’s most sold new vehicle worldwide, the Tesla Model 3 was the best-selling EV at CarMax from September 2023 to February 2024. The top trade-ins for the Model 3 sedan are quite interesting as they include affordable cars like the Honda Accord and much larger vehicles like the Ford F-150 and Jeep Wrangler. 

Jim Lyski, EVP, Chief Innovation and Strategy Officer at CarMax, shared a comment on the results of the Spring 2024 Electric Vehicle Consumer Report.

“Our data analysis confirmed that consumers are still very interested in EVs and that sales were increasingly trending beyond the West Coast. The availability of new models coupled with recent price cuts on new EVs may have contributed to ongoing interest from consumers considering making the switch from gas to electric,” Lyski noted. 

CarMax’s Spring 2024 Electric Vehicle Consumer Report can be viewed here. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Tesla Model 3 and Model Y stand out in Spring 2024 CarMax EV Consumer report





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Tesla US advertising team affected by layoffs: report

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A report recently claimed that Tesla’s US marketing team has been affected by the electric vehicle maker’s recent round of layoffs. Some members of Tesla’s Design Studio in Hawthorne, CA were reportedly affected by the job cuts as well. As noted in a previously leaked Elon Musk email, Tesla will be letting go of over 10% of its workforce as part of an effort to streamline its operations.

As noted in a Bloomberg News report, Tesla’s “growth content” team, which was comprised of about 40 workers and were led by senior manager Alex Ingram, were reportedly affected by the job cuts. Citing people reportedly familiar with the matter, the publication claimed that Ingram was also affected by the workforce reduction, though Tesla reportedly still maintains a marketing team in Europe. 

Bloomberg also claimed that Tesla’s Design Studio in Hawthorne California were affected by the recent round of job cuts. Elon Musk, for his part, noted in a post on X that Tesla’s advertisements have been far too generic so far. “Exactly. The ads were far too generic — could’ve been any car,” Musk wrote in a post on X.

Tesla’s alleged decision to let go of its US marketing team may come as a bit of a surprise considering that CEO Elon Musk approved the idea of advertising during last year’s annual meeting of stockholders. Following the annual shareholder meeting, Tesla was observed to have implemented a series of advertising initiatives, though a good number of them seemed centered on social media campaigns.

Tesla’s recent round of job cuts is the largest by volume to date. With Tesla indicating in a 10-K filing to the United States Securities and Exchange Commission (SEC) that it had a global headcount of 140,473 employees as of the end of 2023, the recent workforce reduction from the company suggests that Tesla would let go of over 14,000 workers across the board. 

Elon Musk, for his part, explained in a post that Tesla needs to reorganize and streamline itself for the next phase of its growth. He also subtly hinted that he is entering “wartime CEO” mode once more, which seems fitting as Tesla is currently working on its ambitious goal of unveiling a dedicated Robotaxi on August 8, 2024. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Tesla US advertising team affected by layoffs: report





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Elon Musk comments on Tesla’s pricing strategy following cuts

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Tesla has dropped the prices of its electric vehicles (EVs) and its Full Self-Driving (FSD) software over the past few weeks, reigniting larger discussions about the automaker’s overall pricing strategy. In response to one person criticizing the frequency of Tesla’s price changes, Elon Musk has pointed to the dealership model, noting that most automakers change prices on their vehicles more regularly than consumers may realize.

On Friday, Tesla reduced the price of the Model S, X, and Y by $2,000, after the company cut the price of monthly FSD subscriptions in half earlier this month. On Saturday, Tesla also cut the price of the outright FSD purchase option, to which some consumers and shareholders responded with frustration.

Tesla’s pricing strategy comes down to one key difference from its competitors

Following the news, Omar of Whole Mars Blog noted that he finds Tesla’s pricing strategy incoherent, to which Sawyer Merritt noted that this was one of the rare downsides of the direct-to-consumer sales model, despite the extra pricing transparency.

“I think that if you had a monkey throw shit at a keyboard to come up with a pricing strategy for Tesla it would be more coherent than what we’ve seen,” Omar said on Sunday. “Subscription price will go up once we release FSD. Actually we will cut it. We are raising Model Y prices. Actually now we are lowering them.”

“It’s amusing to follow, but probably confusing to consumers. Should I buy FSD now because the price was cut? Or should I wait for the next FSD price cut and save thousands of dollars?”

In response, Musk noted that the dealership model doesn’t offer the same level of transparency that a direct-to-consumer model offers, with the MSRP on a car often being far from its actual price.

To be sure, last week’s Model S, X, and Y price cuts followed additional price cuts just a few weeks ago, which included the Model 3, and saw some vehicle prices dropping off by as much as $5,000.

Last year, following aggressive price cuts that sent shockwaves through the industry, Musk noted that Tesla would be opting for a high volume of vehicles delivered at slightly lower margins, especially given its future potential for revenue from software and services.

“We’ve taken a view that pushing for higher volumes and a larger fleet is the right choice here versus a lower volume and higher margin,” Musk said during the company’s Q1 2023 earnings call. “However, we expect our vehicles, over time, will be able to generate significant profit through autonomy.”

“So we do believe we’re like laying the groundwork here, and then it’s better to ship a large number of cars at a lower margin, and subsequently, harvest that margin in the future as we perfect autonomy. This is an extremely important point.”

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Elon Musk comments on Tesla’s pricing strategy following cuts





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