You are being proactive when considering the resale value of the car you're about to invest in, especially electric cars like Teslas. Do they hold more value than their gasoline-powered counterparts?
These questions must be justifiably roaming every buyer’s thoughts. We're anxious about newer models rendering our former model cars obsolete, affecting the resale value. This blog gives you an overview of Tesla vehicles, current market trends for Tesla resale value compared to traditional cars, and some tips for potential buyers.
Tesla Inc. is an electric vehicle (EV) and clean energy company founded in 2003 by Elon Musk, JB Straubel, Martin Eberhard, and Marc Tarpenning. Tesla offers several EV models, including the Model S, Model X, Model 3, etc.
Teslas are designed with customized, cutting-edge software and innovative technology that set them apart. This includes autopilot driving, over-the-air updates, and the Supercharger network, to mention a few.
Tesla has been recognized as the world's leading electric vehicle manufacturer, with over 1 million vehicles delivered worldwide. Let's explore Tesla's current market trends. 🚗
Current Market Trends: Tesla's current market trends are experiencing a significant decline in the electric vehicle industry.
Tesla shares dropped on the 10th of March 2024. Tesla's US market share has fallen below 50% for the first time.
The company is currently facing fierce competition, majorly in some regions, including China (NIO and BYD Company), the US (Ford Motor and General Motors), and the UK (Mercedes-Benz and BMW).
Despite all the challenges and struggles Tesla is going through, there are still some impressive achievements in the European market, especially in the UK. Tesla sales rose to 21% in March, with 4,000 sold in the UK.
Also, Tesla continues to invest heavily in its future with planned capital expenditures worth billions of dollars.
Tesla's resale value has been a controversial topic so far. While it's statistically the most popular, sporty, and priciest electric car, its resale value is impacted by a lot of factors, including market dynamics and social and technological influences.
Compared to gasoline-powered vehicles, Tesla's resale value is above the curve.
A study in November 2023 by iSeeCars found that the Tesla Model S and X both lost more value than the average EV over five years. Although there's a big difference between comparing value retention and resale between Tesla and gasoline-powered vehicles.
Teslas hold their value better than traditional gasoline-powered vehicles. A study by iSeeCars found that the Tesla Model S retains its value 2 times better than the average gasoline-powered car. But the resale value of Tesla tends to depreciate less than traditional gasoline-powered cars.
Used Tesla's prices are currently on a dropping streak. Imagine buying a new Tesla for as high as $70,000 only to hit $30,000 for resale.
Are you looking to buy a Tesla? Research thoroughly to understand the different models, features, and choices available.
If you're buying used, look for CPO vehicles certified by Tesla.
Having a good grasp of the warranty maintenance requirements of your Tesla will save you extra money and headaches.
Tesla occasionally introduces new feature updates through the Air Updates. So, you would need to occasionally restart your car system to stay up-to-date.
Connect with other Tesla owners through the Tesla community, where you can get hands-on knowledge and insights about your car. It's an invaluable network.
Even though Tesla stock is on a downward trend, it still holds much more value than traditional gasoline-powered vehicles. Moreover, Tesla continues to invest heavily to stabilize stock prices and improve the overall value of Tesla.
1. Do Teslas hold their value better than gasoline-powered cars?
Yes, it holds twice as well as traditional cars. Compared to other gasoline cars, Teslas show less depreciation, so they retain their value better. However, recent market fluctuations and increased competition have affected Tesla’s resale value.
2. Why is Tesla’s resale value declining?
The EV market is harsh and fast-growing. It makes competition high, and EV manufacturers have to come up with new and great offers to keep up with the market requirements. In addition, frequent software and model upgrades also make older models less desirable. On the other hand, Tesla frequently reduces the price of new models. Resulting in, it makes used Teslas unfavorable.
3. What should I consider before buying a Tesla to maximize resale value?
To maximize resale value, consider purchasing a popular model with high demand, maintaining the vehicle well, and keeping up with software updates. Additionally, if buying used, consider a Certified Pre-Owned (CPO) Tesla, which ensures quality and warranty coverage. Understanding Tesla’s warranty and maintenance requirements can also help preserve value over time.
