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Tesla Model 3 resale value is over five times better than industry average: study

(Photo: Andres GE)

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Teslas have garnered a reputation for many things, and having a great resale value is one of them. This was recently highlighted in a study conducted by car search engine iSeeCars.com, which analyzed over 6.9 million car sales to identify which vehicles experienced the most and least depreciation in the past three years. As it turns out, the Tesla Model 3 is able to retain its value over five times better than other EVs in the market. 

As noted by iSeeCars in its recent study, a vehicle generally depreciates 39.1% after the average lease term of three years. According to iSeeCars CEO Phong Ly, three years is a popular age for used car buyers because vehicles would have taken a major depreciation hit by the three year mark, and the cars generally are equipped with a good amount of recent features. 

“Three years is a popular age for used car buyers because the cars have taken a major depreciation hit, but likely have many of the latest modern safety and technology features. Some of these bargains provide good opportunities for car shoppers as reliable vehicles that are discounted because they simply aren’t as popular in their vehicle segments,” Ly noted.

(Photo: Andres GE)

Electric vehicles usually depreciate faster than their internal combustion counterparts, with the study stating that the average depreciation of EVs over a three year lease period is about 52.9%. That’s almost 1.4 times greater than the average for all cars in the market. This, according to Ly, is partly because most EVs in the market today were bought with the $7,500 tax credit, and electric car technology moves at a rapid pace.

“Categorically, electric vehicles depreciate more than the average vehicle because resale values take into account the $7,500 federal tax credit and other state and local credits that were applied to these vehicles when they were bought new. Because the technology of EVs changes at a rapid pace, obsolescence also plays a role in their dramatic depreciation as well as consumer range anxiety and lack of public charging infrastructure,” the CEO explained. 

This is particularly true for two of the most popular EVs from legacy automakers, the BMW i3 and the Nissan LEAF. According to the recent study, the BMW i3 depreciates 60.4% over a three year period, while the Nissan LEAF depreciates 60.2%. This trend, however, is completely broken by Tesla, whose Model S, Model X, and Model 3 depreciates far lower than the EV industry average. The Model S, for example, depreciates 36.3% over a three-year period, while the Model X depreciates 33.9%. 

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(Credit: iSeeCars.com)

What is rather remarkable is that the Tesla Model 3, the electric car maker’s most affordable vehicle in its lineup today, retains its value even more than its more expensive siblings. According to iSeeCars.com’s data, the Model 3 only loses 10.2% of its value over a three year period. This means that the Model 3’s depreciation is over five times less than the EV industry’s average, and over three times less than the overall auto market’s average. Part of this, according to the study, is due to the Model 3’s bang for your buck nature. 

“The Tesla Model 3 is still very much in high demand since it started production in 2017. Even though it doesn’t present a bargain compared to its new car price, it offers consumers a more affordable option for owning a Tesla,” the study noted. 

There are other factors that are at play that help Teslas retain their value. Unlike other EVs on the market, Teslas receive frequent over the air software updates that give vehicles new features, and at times even better performance, over time. This allows even older Teslas to be comparable to their newly produced counterparts. Unfortunately for legacy automakers, over the air software updates are one thing that is proving to be quite difficult to crack. 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla still has two major milestones on track before end of Q2

Tesla still is on track to complete two monumental achievements as Q2 nears its end.

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(Credit: Tesla)

Tesla still has two major milestones it is on track to complete before the end of the second quarter, according to statements made by the automaker earlier this year.

With the launch of the Robotaxi platform in Austin on Sunday, Tesla has already completed perhaps its biggest milestone of 2025.

However, these are not the only things the company hopes to accomplish before we head into the latter half of the year, as there are two major things the company said it is aiming to complete before the third quarter starts next week.

Affordable Models

Tesla said earlier this year, on two separate occasions, that it is still on track to develop, build, and unveil the first affordable models that will be built on both the next-gen platform and also have aspects of the current vehicle platform.

Potential affordable Tesla “Model 2/Model Q” test car spotted anew in Giga Texas

In the Q4 2024 Earnings Call in January, the company said:

“Preparations are underway across our existing factories for the launch of new products in 2025, including more affordable models.”

The company continued:

“Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025. These vehicles will utilize aspects of the next generation platform as well as aspects of our current platforms and will be produced on the same manufacturing lines as our current vehicle line-up.”

Although there are only a few days left, Tesla has yet to confirm that these affordable models are delayed, so we can expect that they’ll be arriving before the quarter ends.

The company might have been hinting toward one recently at the Fremont Factory, but it is more likely that the vehicle seen was the new Model Y Performance trim:

Tesla’s apparent affordable model zips around Fremont test track

Tesla delivers itself to customers

Back in late May, CEO Elon Musk said that the first Tesla to self-deliver would happen in June:

Tesla just launched its Robotaxi platform on Sunday, so this would be a tremendous step if it can, in fact, make this happen.

The customer would likely be extremely local to Gigafactory Texas. In the future, the company would load the vehicles onto haulers and then drive to customer homes from delivery centers, showrooms, and repair centers.

Teslas will self-deliver to customers, Elon Musk says: here’s when

Tesla has a few days left to complete both of these tasks, and then it will report delivery figures for the second quarter next week.

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Tesla’s Omead Afshar, known as Elon Musk’s right-hand man, leaves company: reports

Tesla’s Head of North American sales and European ops, Omead Afshar, has reportedly left the company. He was widely-known as Elon Musk’s right-hand man.

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Credit: Elon Musk | X

Tesla’s Omead Afshar, who is widely known as CEO Elon Musk’s right-hand man, has reportedly left the company.

Several outlets are reporting that Afshar either left voluntarily or was potentially terminated on Thursday. His LinkedIn profile has not been updated to reflect this, and still states he presently works at Tesla in the “Office of the CEO.”

Afshar was promoted to Head of North American sales and European operations late last year. We reported on his promotion in October, as he was previously a Project Manager in the Office of the CEO before Musk and co. stepped up his responsibilities.

According to the initial report on Afshar’s departure from Bloomberg, the news has been circulating throughout the company in recent days. His name no longer appears in the company’s internal directory.

It is interesting to think about what could have caused this. Tesla has felt some pressure in Europe with struggling sales figures in some markets. It is the second-best-selling EV maker in the region, with Volkswagen performing slightly better for the year, according to EU-EVs.

Tesla’s Model Y is the best-selling EV in the region.

While the company has not directly confirmed the news, it appears to be true based on the reports.

Tesla is usually relatively quick to dispel any headlines that go out from mainstream media that are not factual. This has yet to be responded to by any executive, including Musk.

Afshar has been with Tesla for seven years and ten months, first joining in September 2017 as a Project Manager in the Office of the CEO.

He then became a Project Director, before his job title was updated to a Cowboy hat emoji in July 2020, around the time Tesla started moving some things to Texas.

Forbes is reporting that Afshar was terminated and did not leave voluntarily. This has yet to be confirmed.

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xAI Colossus pollution concerns in Memphis continue

NAACP & SELC push back against xAI Colossus supercomputer. City tests say air is safe — but activists aren’t convinced.

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(Credit: xAI)

Politicians in Memphis continue to debate about the pollution concerns arising from the xAI Colossus supercomputer.

The NAACP and the Southern Environmental Law Center (SELC) have already expressed interest in filing a lawsuit against xAI over concerns related to air pollution stemming from its gas-powered turbines. Environmental groups have now raised concerns about water pollutants.

On Tuesday, Memphis released third-party air quality test results from June 13 and 16. The tests were conducted in downtown Memphis, Whitehaven, and Boxtown, two miles from xAI’s site. The city claimed levels of 10 pollutants tested were safe.

However, SELC–which is representing the NAACP in a potential lawsuit against xAI–criticized the omission of a key pollutant called ozone from the air quality tests. SELC also noted that monitors were placed against buildings, contrary to EPA guidance, stating air sensors should be “at least six feet above ground level, rooftop, or other objects and away from obstructions, vegetation, or emissions sources that would interfere with the measurement.”

Local opposition intensified, with State Representative Justin J. Pearson asserting: “I stand firm that nothing matters if you cannot breathe clean air, drink clean water, and plant in clean soil.”

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On Wednesday, concerns shifted to the Memphis aquifer, as the Tennessee Department of Environment and Conservation held a virtual meeting on xAI’s wastewater facility.

Activist Pamela Moses criticized xAI. “They are not coming here to uplift or invest in our community. They are here to exploit it. This a distressed and a historically neglected area, and instead of bringing opportunity, Colossal is bringing pollution…secrecy and broken promises,” she said.

xAI’s $80 million Grey Water facility aims to mitigate water concerns. The Colossus Water Recycle Facility, a collaboration between the Tennessee Valley Authority and Nucor Steel, aims to alleviate the strain on the aquifer.

“This project is a game changer in terms of it saving about 4.7 billion gallons of water projected, and about 4.7 billion gallons will remain in the aquifer every year,” said Bobby White of the Greater Memphis Chamber.

As xAI’s Memphis supercomputer continues to be the center of debates, the tension between economic benefits and environmental justice remains unresolved. With ongoing scrutiny and potential legal action, xAI’s efforts to address pollution and water concerns will shape its role in Memphis’ future.

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