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Tesla Second Hand Market Emerges

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Tesla Second Hand Market

The Tesla used car market has been relatively small up until this point mainly because many owners just don’t part with their Teslas. Thanks to the recent D announcement, the Tesla second hand market just doubled in size and will continue to grow as Model S owners begin selling off their cars in exchange for Teslas with newer features.

It’s truly a genius tactic by Tesla Motors that allows early adopters to remain happy by having the latest and greatest, but also enables people that wouldn’t regularly be able to afford a $100k+ Tesla to purchase one at a deeply discounted second hand price.

So, what is a used Tesla Model S worth? Well, that depends on how much you drive and Model S owners that drive between 12k – 15k miles per year can expect trade in values ranging between $55k – $70k. This works out to an effective cost (the amount paid during ownership) between $30k to $40k.

The trade in value on my Model S 85, assuming I put on 25k miles by the time the D option becomes available, will be approximately $49k. If this seems low to you, that’s because it is. There are a few reasons for it which I’ll explain. First, your car loses substantial value the instant you drive it off the lot. Second, Tesla is jump starting a secondary market by placing a pretty low residual value.

Chances are that you’ll get a better price selling the Model S on your own to another private party, which incidentally is exactly what many Model S owners are doing.

Trading in Your Model S for a New Dual Motor Variant

Tesla updated the pricing of the Model S and its options when it added the new dual motor and updated Tech Package to the order selection screen. For fun I decided to configure a Model S with very similarly specifications to my own with the only additional feature being the dual motors. The sticker price for that configuration came out to $98,140 or about $4,000 more than my S85.

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Tesla-Dual-Motor

You may be eligible for another Federal tax incentive of $7,500 and a State-level $2,500 rebate (varies by state) for having a battery electric vehicle. Tax and registration adds another $6,000 which ends up netting out a zero after factoring in the Federal and State incentives.

Trading in my S85 for a newly configured 85D would cost me $48,473. Not only would I have the dual-motor upgrade, but I’d also have the new autopilot feature along with a brand new car with 0 miles and a fresh battery.

The cost to “upgrade” from an old Model S to the new one will obviously vary by owner depending on the age and condition of the trade-in, but will generally cost you between $30k – $50k. On the other hand, brand new buyers have the option to add the dual motor option for “just” $4,000 extra.

Are the dual motor and autonomous driving features worth $48K? Not to me at least. I’d love to have them but I love my Model S as it is.

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"Rob's passion is technology and gadgets. An engineer by profession and an executive and founder at several high tech startups Rob has a unique view on technology and some strong opinions. When he's not writing about Tesla

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Tesla AI5 chip nears completion, Elon Musk teases 9-month development cadence

The Tesla CEO shared his recent insights in a post on social media platform X.

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Credit: Tesla

Tesla’s next-generation AI5 chip is nearly complete, and work on its successor is already underway, as per a recent update from Elon Musk. 

The Tesla CEO shared his recent insights in a post on social media platform X.

Musk details AI chip roadmap

In his post, Elon Musk stated that Tesla’s AI5 chip design is “almost done,” while AI6 has already entered early development. Musk added that Tesla plans to continue iterating rapidly, with AI7, AI8, AI9, and future generations targeting a nine-month design cycle. 

He also noted that Tesla’s in-house chips could become the highest-volume AI processors in the world. Musk framed his update as a recruiting message, encouraging engineers to join Tesla’s AI and chip development teams.

Tesla community member Herbert Ong highlighted the strategic importance of the timeline, noting that faster chip cycles enable quicker learning, faster iteration, and a compounding advantage in AI and autonomy that becomes increasingly difficult for competitors to close.

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AI5 manufacturing takes shape

Musk’s comments align with earlier reporting on AI5’s production plans. In December, it was reported that Samsung is preparing to manufacture Tesla’s AI5 chip, accelerating hiring for experienced engineers to support U.S. production and address complex foundry challenges.

Samsung is one of two suppliers selected for AI5, alongside TSMC. The companies are expected to produce different versions of the AI5 chip, with TSMC reportedly using a 3nm process and Samsung using a 2nm process.

Musk has previously stated that while different foundries translate chip designs into physical silicon in different ways, the goal is for both versions of the Tesla AI5 chip to operate identically. AI5 will succeed Tesla’s current AI4 hardware, formerly known as Hardware 4, and is expected to support the company’s Full Self-Driving system as well as other AI-driven efforts, including Optimus.

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Tesla Model Y and Model 3 named safest vehicles tested by ANCAP in 2025

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025.

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Credit: ANCAP

The Tesla Model Y recorded the highest overall safety score of any vehicle tested by ANCAP in 2025. The Tesla Model 3 also delivered strong results, reinforcing the automaker’s safety leadership in Australia and New Zealand.

According to ANCAP in a press release, the Tesla Model Y achieved the highest overall weighted score of any vehicle assessed in 2025. ANCAP’s 2025 tests evaluated vehicles across four key pillars: Adult Occupant Protection, Child Occupant Protection, Vulnerable Road User Protection, and Safety Assist technologies.

The Model Y posted consistently strong results in all four categories, distinguishing itself through a system-based safety approach that combines structural crash protection with advanced driver-assistance features such as autonomous emergency braking, lane support, and driver monitoring. 

This marked the second time the Model Y has topped ANCAP’s annual safety rankings. The Model Y’s previous version was also ANCAP’s top performer in 2022.

The Tesla Model 3 also delivered a strong performance in ANCAP’s 2025 tests, contributing to Tesla’s broader safety presence across segments. Similar to the Model Y, the Model 3 also earned impressive scores across the ANCAP’s four pillars. This made the vehicle the top performer in the Medium Car category.  

ANCAP Chief Executive Officer Carla Hoorweg stated that the results highlight a growing industry shift toward integrated safety design, with improvements in technologies such as autonomous emergency braking and lane support translating into meaningful real-world protection.

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“ANCAP’s testing continues to reinforce a clear message: the safest vehicles are those designed with safety as a system, not a checklist. The top performers this year delivered consistent results across physical crash protection, crash avoidance and vulnerable road user safety, rather than relying on strength in a single area.

“We are also seeing increasing alignment between ANCAP’s test requirements and the safety technologies that genuinely matter on Australian and New Zealand roads. Improvements in autonomous emergency braking, lane support, and driver monitoring systems are translating into more robust protection,” Hoorweg said.

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Tesla Sweden uses Megapack battery to bypass unions’ Supercharger blockade

Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery.

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Credit: Tesla Charging/X

Tesla Sweden has successfully launched a new Supercharger station despite an ongoing blockade by Swedish unions, using on-site Megapack batteries instead of traditional grid connections. The workaround has allowed the Supercharger to operate without direct access to Sweden’s electricity network, which has been effectively frozen by labor action.

Tesla has experienced notable challenges connecting its new charging stations to Sweden’s power grid due to industrial action led by Seko, a major Swedish trade union, which has blocked all new electrical connections for new Superchargers. On paper, this made the opening of new Supercharger sites almost impossible.

Despite the blockade, Tesla has continued to bring stations online. In Malmö and Södertälje, new Supercharger locations opened after grid operators E.ON and Telge Nät activated the sites. The operators later stated that the connections had been made in error. 

More recently, however, Tesla adopted a different strategy altogether. Just before Christmas, Tesla went live with a new charging station in Arlandastad, outside Stockholm, by powering it with a Tesla Megapack battery, as noted in a Dagens Arbete (DA) report. 

Because the Supercharger station does not rely on a permanent grid connection, Tesla was able to bypass the blocked application process, as noted by Swedish car journalist and YouTuber Peter Esse. He noted that the Arlandastad Supercharger is likely dependent on nearby companies to recharge the batteries, likely through private arrangements.

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Eight new charging stalls have been launched in the Arlandastad site so far, which is a fraction of the originally planned 40 chargers for the location. Still, the fact that Tesla Sweden was able to work around the unions’ efforts once more is impressive, especially since Superchargers are used even by non-Tesla EVs.

Esse noted that Tesla’s Megapack workaround is not as easily replicated in other locations. Arlandastad is unique because neighboring operators already have access to grid power, making it possible for Tesla to source electricity indirectly. Still, Esse noted that the unions’ blockades have not affected sales as much.

“Many want Tesla to lose sales due to the union blockades. But you have to remember that sales are falling from 2024, when Tesla sold a record number of cars in Sweden. That year, the unions also had blockades against Tesla. So for Tesla as a charging operator, it is devastating. But for Tesla as a car company, it does not matter in terms of sales volumes. People charge their cars where there is an opportunity, usually at home,” Esse noted. 

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