Tesla owners are facing a tough decision as the brand’s stock and used car values continue to plummet. In 2019, Elon Musk famously claimed that Teslas were an “appreciating asset,” but current trends suggest otherwise. With used Tesla values dropping three times faster than any other brand, some owners are looking to offload their cars quickly before the brand hits rock bottom.
A recent report from CarGurus revealed that the entire Tesla lineup is experiencing significant depreciation. Used Teslas have fallen an average of -7.26% year-over-year, far exceeding the industry average. The Tesla Cybertruck has seen the most drastic drop in value at -58% year-over-year, while other models like the Model 3, Model Y, Model S, and Model X have also experienced significant declines.
The reasons behind this rapid depreciation are unclear. It could be due to an influx of used Teslas entering the market, increased competition in the EV space, or a growing aversion to the Tesla brand itself. Many former Tesla owners have taken to Reddit to express their relief at having sold their cars and switched to other EVs like Rivian, Chevy Equinox EV, or Kia EV6 GT.
Despite the negative trends, there is a silver lining for potential buyers. The lower prices of used Teslas make them more affordable than ever, with the average price now comparable to that of all used cars listed on CarGurus. This presents an opportunity for those willing to overlook the brand’s current challenges.
In other news, Audi is facing challenges of its own, with sales plummeting and the need to cut jobs in Germany. However, the company plans to introduce a new entry-level electric model at its Ingolstadt plant, offering hope for the future of the brand.
Meanwhile, former Nissan-Renault CEO Carlos Ghosn has criticized Nissan’s current leadership and suggested that Elon Musk could be the key to fixing the automaker’s woes. Ghosn has long admired Musk’s leadership style and believes that Nissan could benefit from a similar visionary approach to electrification and innovation.
As Tesla owners navigate the uncertain landscape of the brand’s depreciating values, they are left with a difficult decision. While some may choose to sell their cars and move on, others may continue to enjoy their EVs despite the challenges. Ultimately, the future of Tesla and its owners remains uncertain, but the rapidly changing EV market offers both risks and opportunities for those willing to navigate it.