After two years of downward pressure and headwinds, there has been a spark in wholesale prices of electric vehicles.

Especially for the segment’s most dominant nameplate.

And among internal combustion engine vehicles, fuel efficiency is fueling price retention.

That’s according to a pair of reports released by wholesale automotive experts this month.

Starting with the National Auto Auction Association, a mid-June report from the trade group shows that EV wholesale prices rose in April and May. Nearly half (45%) of EV wholesale sales year-to-date have been Telsa models, and those cars are holding values quite well, NAAA said.

Its AuctionNet data shows the 2023 Model Y values climbing 1.2% month-over-month in May and the 2023 Tesla Model 3 up 2.3%.

Last month, overall wholesale prices were down 2.1% from April.

And while overall 3-year-old vehicle retention was down 1.2 percentage points month-over-month in May, EV retention from the same age group climbed 1.1 percentage points, AuctionNet data shows.

So far this year, overall 3-year-old vehicle retention has climbed 1.1 points, but EV retention is up 2.4 points, NAAA said.

“The improvement in EV retention reflects two key factors: stronger wholesale prices and lower new vehicle MSRPs,” the association said in the report.

NAAA notes that in May of this year, retail-equipped MSRPs on 2023 model-year EVs were down about 11% from where 2022 model-year EVs were a year ago.

“Lower MSRPs are generally supportive of stronger retention, all else equal. While part of the decline in average MSRP reflects changes in the underlying sales mix (i.e., less expensive EVs entering the fold), Tesla also reduced pricing substantially for its 2023 model year vehicles,” NAAA said. “Given Tesla’s dominant share of EV wholesale sales, the brand continues to exert significant influence on overall EV pricing and retention trends.”

Will this newfound wholesale and retention strength last? Too soon to know NAAA says, explaining that there’s usually an uptick in seasonal deprecation after tax season.

Furthermore, the supply of used EVs is likely to rise in the second half, thanks to an anticipated boost in off-lease EV volumes, they said in the report.

“Nevertheless, higher gasoline prices and the allure of a nearly new pre-owned electric vehicle with low mileage appear to be acting as tailwinds for used EV consumer demand at a time when wholesale prices are typically on the downswing,” NAAA said.

A report from Black Book this week echoes some of the fuel-friendly trends the NAAA report shares.

On Tuesday, the company released revised residual value guidance for fuel-efficient vehicles due to “sustained outperformance in wholesale auction results and growing evidence of a structural shift in consumer demand.”

With fuel prices and affordability concerns at sky highs, hybris and fuel-efficient rides are outperforming and retaining increasing more values than their peers, Black Book said.

As such, the company has revised residual value guidance for compact cars, hybrids and a few fuel-friendly crossovers over the next two years.

“The adjustment reflects continued strength in wholesale auction performance, tightening supply, and consumer demand trends that increasingly appear long-term rather than temporary,” Black Book said in a news release.

Swaroopa Pai, who is the company’s director of residual forecasting and analytics, said it’s not just about demand increasing for fuel-efficient vehicles.

“The data shows the performance gap between these segments and the broader market is widening, with meaningful implications for lenders, captives, dealers, and fleet operators,” Pai said in the release.