Recurrent Auto, an auto industry analysis and sales firm, has released its market analysis for Q1 2023, showing that used EV prices have collapsed, led by the Tesla Model 3 and Chevy Bolt.
Perhaps one of the most significant criticisms of electric vehicles is their price. And for the longest time, critics were correct; EVs had dramatically inflated prices (due to demand) compared to their gas counterparts. However, according to data released by Recurrent Auto, the used electric vehicle market is finally cooling off following the price cuts of Tesla.
Perhaps the most interesting data point from Recurrent’s Q1 2023 analysis is the influential factors that pushed used EV prices down by 17% compared to their high in the early part of last year. The Tesla Model 3 and Chevy Bolt were the two most influential vehicles in pushing down the average price. The Tesla Model 3 began to cool off in August last year and subsequently saw its price collapse in the following months. In the Model 3’s case, its price fell roughly 5% month over month throughout Q4 2022.
However, these two models weren’t the only influential factors. Recurrent also found that the sheer volume of used EVs in the United States had tripled since last year, giving consumers more options than ever. Perhaps giving the best context for the scenario, Recurrent states, “The used EV market is now higher volume than any new EV model’s sales besides Tesla Model 3 and Y. It’s time to take this seriously.”
Furthermore, Recurrent notes that 66% more used EVs on the market qualify for the Federal government’s used EV tax incentive of $4,000, totaling 30% of the used EV market.
Following this analysis, Recurrent went as far as laying out its predictions for the market for the rest of the year.
Recurrent believes that the volume of used EVs will likely only continue to increase as manufacturers continue to ramp up production of new EVs. Furthermore, following the trend of the gas vehicle market, sub-$30,000 EVs will become increasingly popular, especially as more and more models with ~250 miles of range approach the $25,000 mark on the used market.
If EVs have any hope of gaining increasing traction in the United States, used EVs will need to decrease in price to allow more and more average Americans to purchase them. And luckily enough, it seems as though that exact scenario is now playing out. Hopefully, through the continued dedication to increased EV production, the EV transition can occur even faster in the coming months and years.
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News
Tesla takes a step towards removal of Robotaxi service’s safety drivers
Tesla watchers are speculating that the implementation of in-camera data sharing could be a step towards the removal of the Robotaxi service’s safety drivers.
Tesla appears to be preparing for the eventual removal of its Robotaxi service’s safety drivers.
This was hinted at in a recent de-compile of the Robotaxi App’s version 25.11.5, which was shared on social media platform X.
In-cabin analytics
As per Tesla software tracker @Tesla_App_iOS, the latest update to the Robotaxi app featured several improvements. These include Live Screen Sharing, as well as a feature that would allow Tesla to access video and audio inside the vehicle.
According to the software tracker, a new prompt has been added to the Robotaxi App that requests user consent for enhanced in-cabin data sharing, which comprise Cabin Camera Analytics and Sound Detection Analytics. Once accepted, Tesla would be able to retrieve video and audio data from the Robotaxi’s cabin.
Video and audio sharing
A screenshot posted by the software tracker on X showed that Cabin Camera Analytics is used to improve the intelligence of features like request support. Tesla has not explained exactly how the feature will be implemented, though this might mean that the in-cabin camera may be used to view and analyze the status of passengers when remote agents are contacted.
Sound Detection Analytics is expected to be used to improve the intelligence of features like siren recognition. This suggests that Robotaxis will always be actively listening for emergency vehicle sirens to improve how the system responds to them. Tesla, however, also maintained that data collected by Robotaxis will be anonymous. In-cabin data will not be linked to users unless they are needed for a safety event or a support request.
Tesla watchers are speculating that the implementation of in-camera data sharing could be a step towards the removal of the Robotaxi service’s safety drivers. With Tesla able to access video and audio feeds from Robotaxis, after all, users can get assistance even if they are alone in the driverless vehicle.
Investor's Corner
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.
Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however.
As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.
With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling.
Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot.
“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries.
“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted.
News
Tesla’s Elon Musk posts updated Robotaxi fleet ramp for Austin, TX
Musk posted his update on social media platform X.
Elon Musk says Tesla will “roughly double” its supervised Robotaxi fleet in Austin next month as riders report long wait times and limited availability across the pilot program in the Texas city. Musk posted his update on social media platform X.
The move comes as Waymo accelerates its U.S. expansion with its fully driverless freeway service, intensifying competition in autonomous mobility.
Tesla to increase Austin Robotaxi fleet size
Tesla’s Robotaxi service in Austin continues to operate under supervised conditions, requiring a safety monitor in the front seat even as the company seeks regulatory approval to begin testing without human oversight. The current fleet is estimated at about 30 vehicles, StockTwists noted, and Musk’s commitment to doubling that figure follows widespread rider complaints about limited access and “High Service Demand” notifications.
Influencers and early users of the Robotaxi service have observed repeated failures to secure a ride during peak times, highlighting a supply bottleneck in one of Tesla’s most visible autonomy pilots. The expansion aims to provide more consistent availability as the company scales and gathers more real-world driving data, an advantage analysts often cite as a differentiator versus rivals.
Broader rollout plans
Tesla’s Robotaxi service has so far only been rolled out to Austin and the Bay Area, though reports have indicated that the electric vehicle maker is putting in a lot of effort to expand the service to other cities across the United States. Waymo, the Robotaxi service’s biggest competitor, has ramped its service to areas like the San Francisco Bay Area, Los Angeles, and Phoenix.
Analysts continue to highlight Tesla’s long-term autonomy potential due to its global fleet size, vertically integrated design, and immense real-world data. ARK Invest has maintained that Tesla Robotaxis could represent up to 90% of the company’s enterprise value by 2029. BTIG analysts, on the other hand, added that upcoming Full Self-Driving upgrades will enhance reasoning, particularly parking decisions, while Tesla pushes toward expansions in Austin, the Bay Area, and potentially 8 to 10 metro regions by the end of 2025.
Tesla takes a step towards removal of Robotaxi service’s safety drivers
Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target
