New data from Edmunds and TransUnion showed a wave of consumers who previously owned an electric vehicle — particularly a Tesla — are trading the EV for a hybrid model at a record pace.

And they’re often taking on a growing amount of financing to get the deal completed.

Edmunds recently indicated a record 20.5% of Tesla trade-ins to franchised dealerships in the second quarter of were used to purchase hybrids, “suggesting that owners aren’t just leaving Tesla but stepping back from EVs altogether.”

Meanwhile, TransUnion noticed the average amount financed to complete a deal for a new hybrid in Q2 rose by 7.2% year-over-year, based on the data analysts had available for the quarter and detailed in its Q2 2026 Credit Industry Insights Report (CIIR).

For used hybrid financing, TransUnion determined the year-over-year increase in Q2 was even more noticeable at 10.1%.

“The big story right now is that hybrids are delivering the sweet spot consumers are looking for,” said Jessica Caldwell, head of insights at Edmunds. “As the math on EVs shifted following the federal tax credit ending, legacy automakers stepped in to catch shoppers who want efficiency without pure-battery commitments. Seeing experienced EV owners make that pivot tells you a lot about the current state of the overall market, not just Tesla.”

And TransUnion added that, “Rising fuel costs and persistently high vehicle prices continue to challenge affordability and weigh on auto purchasing decisions.”

Edmunds also determined Tesla owners are trading in for non-EVs at higher rates than other EV owners.

Among Tesla defectors trading in their car to traditional dealerships toward new-vehicle purchases, the share who bought another EV fell from 40.2% in Q2 of last year to just 22% in Q2 of this year, nearly cut in half and a steeper drop than the overall EV market saw over the same period (44.8% to 34.6%).

As far as affordability is concerned, that availability of used Teslas might be contributing to another financing trend TransUnion spotted.

TransUnion indicated the average amount financed for a used EV in the second quarter of this year was 18.8% lower than Q2 of 2023. Halfway through 2022, this particular average approached $50,000 and now it’s at about $30,000.

“Tesla’s buyers, like its products, have gone mass market,” said Ivan Drury, director of insights at Edmunds.