Elon Musk once claimed that Teslas would appreciate in value post-purchase, a rare occurrence in the auto industry. In 2019, Musk stated that buying a Tesla would be investing in an appreciating asset due to the brand's self-driving features, which he believed would differentiate it and increase its value by tens of thousands.
However, contrary to Musk's prediction, Teslas have predominantly depreciated in value. For instance, the Tesla Model 3, initially priced at $35,000 in early 2019, saw a surge in value during the pandemic but has since dropped to around $29,000 for used models.
Typically, vehicles depreciate in value as soon as they are driven off the dealership lot, losing approximately a fifth of their value each year post-purchase, according to AAA. Last year, Tesla reduced its prices by nearly 25% to boost sales and stay competitive, but the company's market share has decreased, with Tesla now selling about 56% of electric vehicles in the U.S. compared to 80% in 2020.
While there have been instances of Tesla Cybertrucks being resold for double their original value, some new owners have reported rust issues after brief exposure to rainy conditions. This suggests that the novelty of high resale values may not be sustainable in the long run.
