Scrolling through posters with “Used Tesla For sale” is like flipping through photo albums of another era: nostalgic, yet unpredictable. And the Tesla models themselves, more often celebrated as the rock stars of electric cars, actually avoid just cruising on the wave of futuristic tech. Each has its own tale, some even a bit of a suspense novel, about depreciation. Ever heard of the Model S? Well, it is the elder sibling, a storyteller amongst cars whose fall is not exactly a nosedive, but which certainly does not hold its new car energy. Specifics now: older Model S cars can hold their value much like a half-eaten sandwich in the office fridge-OK, not awesome.
Alarming? Maybe, but for a car that once whipped every head on the block, it still steals some hearts. Its sumptuous, patrician laurels are appreciated. The Model S became like a rock band-that doesn’t top the charts anymore-manages to fill mid-sized venues full of loyal fans.
Ah, Model 3-what a cherry this is, in the fruit salad of depreciation. Younger, vibrantly popular amongst those dipping their toes into electric seas, its depreciation curve is smoother and gentler-a kiddie slide. In three years, the Model 3 may lose only 10 to 15% off its starting price.
That’s comforting, at least, in a world in which car deprecation can sometimes seem like tossing cash into a firepit. Speaking of surprises, Model X-with those oh-so-look-at-me! gull-wing doors-suffers a wallet-shaking hit in value pretty quickly. That is sort of like getting a present, unwrapping it in the fancy wrapping paper, and finding socks inside.
What drives these differences?
It’s not rocket science though it sometimes feels like it.
Initial price, demand and supply, and all the jazz about tech upgrades and battery longevity. The Tsunami of new tech can wash away even the mightiest vehicle value with rumor of the next big thing.