Telsa vehicle values decreased drastically in just one year

[AdamK47]

I know many colleagues I work with boasting last year about getting a Tesla. I work in software engineering. People who are generally attracted to the EV movement. Not me. I've gotten the question "Why didn't you get an EV?" many times in response to the purchase of my first R8. Different world altogether with many non-car EV people who just don't get it.

If You Bought A Tesla One Year Ago It Has Lost As Much As $40,000 In Value

“Buying a car today is an investment into the future. I think the most profound thing is that if you buy a Tesla today, I believe you are buying an appreciating asset, not a depreciating asset.” Elon Musk said that in 2019, and like many of his bold vision statements, has continually been proven...

jalopnik.com

And sure enough it is.

Tesla Price Trends and Pricing Insights

Track Tesla price trends and get real-time, industry leading Tesla pricing insights.

www.cargurus.com

 

[quikah]

Tesla pricing is weird. Unlike most other car brands the price fluctuates wildly. For example, I bought my Model Y at $49k new. A year later they were selling for $65k. Then another year later they were back to $49k. Anyone that bought at the peak is kind of screwed.

 

[bbhaag]

Yeah Tesla tanked the used EV market when they lowered new vehicle prices so dramatically. Not just for their own vehicles but the entire EV market as a whole.

It's not a bad thing if you are thinking about buying new because it forced almost every other manufacturer to follow suit but the used market took an incredible hit. Which is not a bad thing if you're in the market for a used EV but holy hell did it piss a lot of people off who bought new and saw their trade in values sink like a rock.

 

[mikeymikec]

Don't cars always depreciate massively in value the moment they become "used"?

 

[bbhaag]

Don't cars always depreciate massively in value the moment they become "used"?

Yes that has historically been the case but since Covid certain high demand vehicles like the Mach-E, Bronco, Supra, Maverick, ect had something crazy happen where they were selling for OVER MSRP. Now that trend is slowly coming to an end especially with EVs.

Of course this doesn't apply to rare super cars like the Ford GT, Enzo, Porsche Carrera GT, ect. Those cars are a different class of vehicle compared to your daily drivers.

EDIT:Just checked my YT feed and Dougs new video address this head on. Love him or hate him the guys got his finger on the pulse of the automotive industry.

 

[AdamK47]

Tesla dropped prices to increase sales volume while simultaneously squeezing the competition. To the point where some manufacturers sold at a loss. Tesla knew they had to do it while demand was still high. That demand had dried up quickly.

 

[bbhaag]

Tesla dropped prices to increase sales volume while simultaneously squeezing the competition. To the point where some manufacturers sold at a loss. Tesla knew they had to do it while demand was still high. That demand had dried up quickly.

I think it depends. Demand for EVs may have slowed but new vehicle sales as a whole are starting to trend down as well. IMO it's unfair to single EVs out and say "See I told you EVs were gonna be a bust!".

Right now EVs aren't for everyone but there is a place for them with some consumers. I don't see them going anywhere anytime soon.

 

[AdamK47]

Don't cars always depreciate massively in value the moment they become "used"?

Yes, your average mass produced commuter vehicle. Not all cars.

 

[manly]

In other words, "mass produced commuter" cars with jacked up pandemic prices depreciate massively. News at 11.

 

[Zorba]

Yes, your average mass produced commuter vehicle. Not all cars.

So 98% of cars?

At this point anyone buying an EV is still an early adopter, so knowing there will be significant improvements and potentially price drops is par for the course. You can either wait for maturity or buy early knowing the risks.

Any one that looks at a car as any type of investment is a fool.

 

[AdamK47]

So 98% of cars?

At this point anyone buying an EV is still an early adopter, so knowing there will be significant improvements and potentially price drops is par for the course. You can either wait for maturity or buy early knowing the risks.

Any one that looks at a car as any type of investment is a fool.

Nobody should be buying a car as an investment unless it's some low volume hypercar or desirable classic, but there are cars that hold value predictably well.

 

[AdamK47]

 

[Red Squirrel]

Cars in general are overly inflated in price, especially in past few years, so they do depreciate super fast.

I can see it being worse with EVs in general too as people have to worry about the battery and how abused it was. Too many stories of people buying used only to find out they need to swap out the entire battery pack for more money than they could have bought a gas car new. Most people are not going to pay 60-100k for something only to turn around and sell it later, and if they do, there's probably a reason why they're cutting their losses and getting rid of it so if buying a used EV you kind of have to wonder why they're selling it.

 

[IronWing]

Hmm, so in another ten years or so I can afford a Lucid Air? The Buick should be dying about then.