When Tesla lowered prices it caused chaos in the used car market. This may only be the beginning of the pain.
Tesla (TSLA -1.92%) has already caused chaos in the used car market in the first few weeks of 2023. The company lowered prices on new vehicles, which caused a drop in used vehicle values, and the impact may show weakness in both auto companies and the economy overall. Travis Hoium highlights what you need to know in this video.
*Stock prices used were end-of-day prices of Jan. 18, 2023. The video was published on Jan. 19, 2023.
Travis Hoium has positions in General Motors and has the following options: long March 2023 $83.33 puts on Tesla. The Motley Fool has positions in and recommends CarMax and Tesla. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.
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