#TeslaDepreciation: Are Teslas losing their value at an alarming rate, or is this just an EV trend? 🤔 As someone who last checked in on the automotive market back in 2007 when I got my Honda, I’m genuinely curious if this is a sign of EVs being unsustainable in the long run. 🌳🚗
Have you noticed Teslas taking a hit in resale value lately? Do you think this is a concern for the electric vehicle industry as a whole, or is it specific to Tesla models? Share your thoughts in the comments below! 💬📉
It’s a Tesla issue. They have horrible QC and are expensive to repair. Plus, the liberals who like EVs no longer want Teslas because the CEO of Tesla (Elon Musk) is a right wing douche.
EVs, however, keep their value for several years until it gets close to time to replace their battery.
Chevy Bolts are having issues, but the manufacture is dealing with them generously. So that should turn out okay for resale.
EVs overall do depreciate faster than a comparable ICE vehicle, but Teslas depreciate even faster. It has to do with the battery and the fact that it does wear down over time and are a major replacement. That does not instill consumer confidence for second hand buyers.
The batteries are about 50% the cost of the car and they depreciate a very high rate.
Also, giga Berlin expansion get’s blocked by local protests.
A bit of both. More upmarket cars tend to depreciate faster and older EVs also suffer due to advances in battery tech meaning they become outdated faster.
People are going to give you a bunch of click-baity reasons that Teslas are depreciating: Elon’s a jerk, the batteries are expensive, Tesla QC sucks, etc.
While all these things are true to some extent, the real reason they’re depreciating is a tale as old as new-vehicle marketing itself: Tesla is cutting prices to move new units, and this makes used ones cheaper.
the EV industry issue
they want to reinvent the wheel and ask a huge amount to give little
if they make an already vehicle a EV for 10% more the depreciation prices wasn’t so huge, because the parts to repair would be cheaper ‘coz already exists
Tesla for sure. Teslas are some of the worst quality vehicles you will ever see for the price.
Along with repairs taking forever and being super expensive.
EVs are depreciating, worse with Tesla due to Tesla new car prices have dropped significantly compared to when they had less competition. They’re still trying to find the right pricing as well as making production more efficient. As this goes on, prices drop so depreciation occurs. Combustion engine vehicles have been developed for decades so improvements are a lot slower and depreciation is slower. My Nissan leaf is depreciating a lot slower than Teslas.
EV Depreciation does not signal viability of EVs for green energy because EVs are not a source of green energy. They can use green energy to fuel vehicles.
The only sources I have for my suspicions are friends that work in the automotive industry. EVs cannot be repaired by your average mechanically inclined person and shops even have trouble repairing them because they are pretty much a giant computer. If the body is damaged, it is nearly impossible to fix. If the internals and the body are damaged, the car pretty much has to be replaced. The longevity is likely an issue because of this. There’s no ability to just replace parts of the motor, you have to replace the whole motor. They’re not economical for the average person. I personally don’t find it to be very “green” to have to dispose of the whole car and buy a whole new one that requires so many finite non-renewable resources to develop (including fossil fuels and lithium). We aren’t even sure of a great way to dispose of them because of the amount of hazardous material. The batteries also aren’t great in hot or cold or fluctuating temperatures so they aren’t viable for a large part of the country. On top of that, chargers are hard to find and people that don’t have outdoor power sources (i.e. apartment residents) can’t easily charge their cars at home.
Personally, I’d argue that a ’80s gas guzzling truck that is still on the road 40 years later after regular maintenance and some replacement parts is better for the environment than an EV that can’t be maintained or repaired and has to have all or most of the vehicle replaced relatively soon after purchase. On top of that, they are not practical at all for low income individuals that can’t afford a basic mechanic much less a computer engineer at the dealership and doesn’t have the ability to install a charger at their residence.
I’ll step off my soap box now…
EV is simply a smartphone on wheels. Used smartphones are cheap.
It’s a car issue.
It was always going to happen.
It’s an emerging market. All car manufacturers are working on improving EVs right now. Your car will be more outdated at a faster rate than a regular car would due to the tech changing faster. Not just on batteries either, they are loaded with tech stuff that will get out of date.
Personal opinion only, but I also think some of the shine has come off Tesla too now. It’s not the new trendy thing any more, it’s not seen as a premium product like say apple as much as it was after the last 5 years of news cycle on them.
Car rental companies just dumped large portions of their EV fleets as well. Lots of teslas from hertz
All of the above.
It’s a Tesla issue, and EV issue, and a car issue.
– Cars depreciate in value quite quickly, especially if you buy them new – if you buy a new car, then as soon as you drive away from the dealership you already lose a significant amount of the car’s value.
– As EVs get older the battery performance declines. Once an EV gets to around 100,000 miles, then the battery performance decreases quite significantly, so older EVs lose value quite quickly. Lots of EV manufacturers do offer a warranty where they will replace the battery for free, but subject to certain conditions – you normally have to reach 80,000-100,000 miles within a set number of years (usually 8-10). If your EV is outside the warranty then the value of the vehicle decreases significantly, as replacing batteries is expensive – in lots of EVs, the cost of the battery can approach 50% of the value of the car itself.
– Tesla has had a bunch of issues, mainly around bad QC and bad PR from their CEO which means that Teslas are no longer as attractive as they once were. This means that Teslas are now nowhere near as valuable as they used to be.
Combo.
It’s a class issue
Pretty much any new vehicle bought drops in value the second you drive it off the lot. How much depends on the vehicle itself. There have been fringe cases of certain extremely high-demand/limited availability vehicles that sold on the used market for more than sticker, but that is rare in the overall automotive market.
That being said, talk to Hertz. They have been dumping a large portion of their EV’s in their rental fleet. If I recall, some of the reasons given were: Many customers don’t understand the limitations and trade-off’s required of EV’s vs. traditional vehicles, resulting in dissatisfaction, many customers are not willing to accept the limitations and trade-off’s to drive them, they drive differently which has resulted in more wrecks vs. traditional vehicles and the repairs are very expensive, when required.
Depreciation is just a measure of consumer confidence. There hasn’t been a more erratic and polarizing CEO in the history of global car manufacturing. Add that to the failure of the Cybertruck so far and you have a perfect strom. Oh and they fired and are now tying to rehire their entire Supercharger team. From a business perspective there is no reason anyone should be confident in the future of Tesla. I hope they succeed but shits been wild over the last year.
All vehicle depreciate as soon as they drive off the lot.
EVs have the added perk that when the battery is done they are worthless. A Tesla battery is at least $12,000.
Most people don’t want to purchase something used that they are going to have to spend another $12k+ on.
The depreciation is due to newer EVs being better. Charging faster, longer range, better NVH, more features, etc. Battery degradation is pretty much a non-issue in modern EVs that aren’t the Nissan Leaf as the onboard systems monitor charging and discharging.
People are looking at EVs like phones and computers, which obviously depreciate quite quickly. New phones have better cameras, battery, screen etc and therefore decreases the perceived value of the old phone.
It’s an *investor* issue. 😆
https://www.forbes.com/sites/dereksaul/2024/04/16/tesla-stock-sinks-to-near-12-month-low-as-market-value-falls-below-500-billion/?sh=45e027d14cc9
How about the basic topic of, cars have gotten frigging crazy expensive in general for awhile now.
Not long ago ( 2010’ish ) a nice equipped pickup truck, with leather, 4 doors, extended cab etc…waa like $40k, that same truck today is $70k to $80k
Or a Honda Civic, not the cheap model, but nicely equipped, my Mom bought a 2017 brand new at that time for $16k, that same model today is upper $20k’s. WTF. The price went up a staggering 50% higher in less than 10 years.
My salary sure the F hasn’t gone up 50% in 8 years, uh no LOL.
I like the idea of EV’s, but just in general they’re rather pricey. The Tesla Model Y was originally touted as an affordable SUV with a price tag of $39k. Ok that’s a fair price for that small, minimal looking EV. But it was selling for $60k and up for awhile. That car is not a $60k vehicle, not even close.
I hope the car market crashes hard and these $90k pickup trucks sit on lots for a decade. Or cheap small EV SUV’s with price tags of $60k sit and rust.
But why are Tesla sales dropping? Easy, the CEO is a Reich-winger, Trump-tard.
As of right now, I think hybrid ICE engines are the way to go.
It’s because it’s a piece of junk
One thing I haven’t seen people mention here in regards to tesla is how their stocks are evaluated. Historically, Tesla has been evaluated on the stock exchange as a tech company rather than a car manufacturer. They were also one of the only people interested in manufacturing electric cars. Now, everyone makes electric cars, and the stock market is starting to finally assess Tesla as a car manufacturer, which has led to less interest in the company and a particularly steep depreciation in their cars value because it’s being assessed as a car instead of a piece of tech.
Hertz is selling all their Tesla for cheapÂ
In the USA the truth will come out soon enough.
The USPS postal service had z fleet of 160000 mail trucks being replaced as we speak.
The old fleet is 1996 ford explorer chasis and drivetrain and 1998 S10.
They’ve done the job for 25 years.
The new fleet is a EV.
Sooo
If your mail in next couple years starts to get not delivered on time or days late?
You’ll know why.
All the Pro EV people talk about efficiency especially at stops.
Tell me about the heaters. The A/C, and how battery charge is affected defrosting ice off windshield bfore work in morning. And then at quitting time to go home.
Or say Arizona with A/C full tilt, stop n go Southern Cal traffic.
The commuters stuck on I95 in Virginia 2 winters ago that batteries died while stuck in 9 hour traffic jam.
Highway dept had no problem getting gas to cars to get them to next exit .
But EV owners were SOL .pay the tow truck fee and, wait.
It’s likely EV’s have hit their peak market share until more mandates are imposed
Tl;dr: you are paying for the battery and batteries have a short life span.
Longer version is about how I got a model S and after the new model came out, the price dropped so hard, I couldn’t sell the extremely sought after (at the time) car anywhere near it was supposed to worth.
Electric cars are relatively easy to manufacture. There are companies making it to order. fisker has no factories for example. Any car interior will be worn down in 10 years, battery will deteriorate, outside will look dated.
Cars at the similar price range (like a Mercedes) will have everything in them built for a 10+ years in mind. Mercedes owners used to be able to (might still) get badges from the factory to put on their grill, proudly showing off big milestones like 100k, 250k miles and such. Interiors are durable and design was often easily lasted over 10 years. We have a relatively cheaper Mercedes, turning 5 and it’s like new, not kidding. You pay for many things when you buy.
With an electric car, you mainly buy the battery and that will depreciate like crazy. There is no magic here.
Edit: it’s not about EVs, but lithium ion tech.
The huge depreciation everyone is referring to was cause of a set of peculiar events like Covid, supply chain shock, inflation, etc. Elon promised that the M3 would cost $35k but people still went out and bought them for $60-65k during its peak price.
And now people are mad that you can basically get it around the $40k range.
Battery life degrades over time. It’s extremely expensive to replace the battery.
Both. In the case of Teslas, they’re built like shit and Tesla makes it very difficult and expensive to repair and even to get parts. The poor build is not making things better and where I’m at, Teslas are beat to hell after a couple of years.
With the German automakers, the problem is they’re all 1-2 generations behind with respect to the charging and voltage systems, so it’s advised to lease and not buy because after a year or so, with advancements in charging infrastructures, you’re going to be left with slow charging due to the lower voltage charging systems. This is a problem that will persist and the Germans have recommitted themselves back to ICE engines into the 2030s now, starting with Mercedes as of this week.
I think a lot of it comes down to people’s fear of the cost of batteries. When you buy a new EV, there’s a good chance that the battery will likely last at least the life of the your ownership of that car. However, used EVs are another story. Whether that’s a valid concern or not, I’m not sure, but I would say that a lot of people are hesitant buying a used EV, knowing that if the battery fails and needs to be replaced, the cost of replacement could likely exceed what they paid for the used car, so the car is effectively totaled.
Like I mentioned, that may not be a valid reason, but it’s something most people think about when buying a used car, is potential maintenance and repair costs, since there’s usually no warranty, or a very limited warranty on used cars. For that reason, fewer people are willing to buy used EVs, and that impacts the resale value significantly. Compared to a used Toyota for example, where if you buy a used Toyota with 50k miles for $15-20k, there’s a very good chance that that car will last a long time and have relatively minimal repair costs compared to the initial purchase cost of the used vehicle.
No need for lots of talk…
Its an EV issue
For many reasons
If only Teslas are affected I would say it’s a Tesla thing. They’ve been over-valued and under-depreciating for most of the life of Tesla, largely because they were the largest player in the EV game. With larger players like GM, Volvo, etc., entering the EV space, Tesla’s market share decreasing by a lot and their vehicles are better reflecting typical automotive depreciation
If you’re gonna buy a car, buy it because you need one, not because it’s an investment, cars depreciate massively and quickly.
Lucid
Less of an issue, more that it’s market competition.
Ford and Hyundai in particular have been dropping MSRP prices and Tesla has had to do so as well to try to keep their market share.
Thats normal for a free market but not normal for Tesla if I follow correctly.
They’ve been the only game in town for a long time. The company hasn’t really had to do this before and now Tesla owners are understandably angry their asset has lost value.
all cars lose half their value as soon as you drive off the lot. Tesla is no different
I mean this is just an issue with any car in general
Your car’s value is effectively cut in half almost the second you drive it off the lot
It’s a car issue. All cars are depreciating assets except collectors cars.
its an idiotic global socialism question. global warming has been greatly exaggerated to push global socialism. to pretend global warming is true one must pretend that use of fossil fuels is causing it.
Cars depreciate when you buy them. Tesla was an oddity for appreciating for a while particularly during the pandemic due to demand. Add on to this that Tesla has been cutting prices and voila!
It’s because they don’t sell enough anymore.
All the rich people, who could easily buy such a tesla did.
The normal middle class, can’t.
So they look at cheaper alternatives: Chinese electric cars.
What did Biden do: slap on 100% import tax.
Won’t solve the problem.
The price gas to come down massively. And the shareholders dont like that, because this means less profit per car sold.