Nearly every Tesla model hemorrhages over half its resale value in 5 years
Has anyone ever told you that a car is a depreciating asset? As depressing as that might sound, there’s truth to it. Even the vehicles with the highest average resale rates, like the Porsche 911, still shrug off some of their original value in the first half-decade of ownership. However, with the average EV model, including Tesla vehicles, the numbers look especially dismal. And the news just gets worse across the pond.
No matter the model or the continent, a Tesla is good for some serious depreciation
In the United States, the Model S takes the No. 3 spot among the most depreciation-prone vehicles on the market. On average, the Model S will drop around $52,165 in its first five years of ownership. That kind of depreciation puts the Model S just behind the Jaguar I-PACE and BMW 7-Series.
| Tesla model | Average value lost (USD) | Average 5-year depreciation |
|---|---|---|
| Model S | $52,165 | 65.2% |
| Model X | $53,846 | 63.4% |
| Model Y | $36,225 | 60.4% |
| Model 3 | $23,771 | 55.9% |
According to iSeeCars, the rest of the lineup didn’t fare too well either. The best-selling Tesla Model Y depreciates over 60% of its original value in five years, nearly 15% more than the nationwide industry average. Even the Model 3, the American-market EV with the lowest average value loss, depreciates 10.3% more than the average of 45.6%. See? Depreciating assets for everyone.
The European market isn’t much better for value retention
According to eCarsTrade, the Tesla Model S retains value even worse on the other side of the pond. On average, the luxury EV sedan shrugs off an average of €73,201 ($81,715) in the first five years of ownership. Even the budget-minded EVs, the Model Y and Model 3, lose well over half their original value in the first half-decade.
| Tesla model | Euro-market MSRP | Average price after 5 years |
|---|---|---|
| Model S | $104,317 | $37,315 |
| Model Y | $67,399 | $27,996 |
| Model 3 | $53,504 | $26,532 |
Of course, there’s an upside to all this depreciation. That is, unless you already own one. Let’s say you weren’t an early EV adopter. Now, the used market and depreciation rates make for some pretty appealing discount car shopping. Throw in battery warranties that stretch well beyond the five-year mark, and a used EV doesn’t seem all that scary.
