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.
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%.
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.
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Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
Canaccord Genuity analyst George Gianarikas raised his Tesla (NASDAQ:TSLA) price target from $482 to $551. He also maintained a “Buy” rating for TSLA stock over the company’s improving long-term outlook, which is driven by autonomy and robotics.
The analyst’s updated note
Gianarikas lowered his 4Q25 delivery estimates but pointed to several positive factors in the Tesla story. He noted that EV adoption in emerging markets is gaining pace, and progress in FSD and the Robotaxi rollout in 2026 represent major upside drivers. Further progress in the Optimus program next year could also add more momentum for the electric vehicle maker.
“Overall, yes, 4Q25 delivery expectations are being revised lower. However, the reset in the US EV market is laying the groundwork for a more durable and attractive long-term demand environment.
“At the same time, EV penetration in emerging markets is accelerating, reinforcing Tesla’s potential multi‑year growth runway beyond the US. Global progress in FSD and the anticipated rollout of a larger robotaxi fleet in 2026 are increasingly important components of the Tesla equity story and could provide sentiment tailwinds,” the analyst wrote.
Tesla’s busy 2026
The upcoming year would be a busy one for Tesla, considering the company’s plans and targets. The autonomous two-seat Cybercab has been confirmed to start production sometime in Q2 2026, as per Elon Musk during the 2025 Annual Shareholder Meeting.
Apart from this, Tesla is also expected to unveil the next-generation Roadster on April 1, 2026. Tesla is also expected to start high-volume production of the Tesla Semi in Nevada next year.
Apart from vehicle launches, Tesla has expressed its intentions to significantly ramp the rollout of FSD to several regions worldwide, such as Europe. Plans are also underway to launch more Robotaxi networks in several more key areas across the United States.
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Waymo sues Santa Monica over order to halt overnight charging sessions
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Waymo has filed a lawsuit against the City of Santa Monica in Los Angeles County Superior Court, seeking to block an order that requires the company to cease overnight charging at two facilities.
In its complaint, Waymo argued that its self-driving cars’ operations do not constitute a public nuisance, and compliance with the city’s order would cause the company irreparable harm.
Nuisance claims
As noted in a report from the Los Angeles Times, Waymo’s two charging sites at Euclid Street and Broadway have operated for about a year, supporting the company’s growing fleet with round-the-clock activity. Unfortunately, this has also resulted in residents in the area reportedly being unable to sleep due to incessant beeping from self-driving taxis that are moving in and out of the charging stations around the clock.
Frustrated residents have protested against the Waymos by blocking the vehicles’ paths, placing cones, and “stacking” cars to create backups. This has also resulted in multiple calls to the police.
Last month, the city issued an order to Waymo and its charging partner, Voltera, to cease overnight operations at the charging locations, stating that the self-driving vehicles’ activities at night were a public nuisance. A December 15 meeting yielded no agreement on mitigations like software rerouting. Waymo proposed changes, but the city reportedly insisted that nothing would satisfy the irate residents.
“We are disappointed that the City has chosen an adversarial path over a collaborative one. The City’s position has been to insist that no actions taken or proposed by Waymo would satisfy the complaining neighbors and therefore must be deemed insufficient,” a Waymo spokesperson stated.
Waymo pushes back
In its legal complaint, Waymo stated that its “activities at the Broadway Facilities do not constitute a public nuisance.” The company also noted that it “faces imminent and irreparable harm to its operations, employees, and customers” from the city’s order. The suit also stated that the city was fully aware that the Voltera charging sites would be operating around the clock to support Waymo’s self-driving taxis.
The company highlighted over one million trips in Santa Monica since launch, with more than 50,000 rides starting or ending there in November alone. Waymo also criticized the city for adopting a contentious strategy against businesses.
“The City of Santa Monica’s recent actions are inconsistent with its stated goal of attracting investment. At a time when the City faces a serious fiscal crisis, officials are choosing to obstruct properly permitted investment rather than fostering a ‘ready for business’ environment,” Waymo stated.
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Tesla FSD v14.2.2 is getting rave reviews from drivers
So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Tesla Full Self-Driving (Supervised) v14.2.2 is receiving positive reviews from owners, with several drivers praising the build’s lack of hesitation during lane changes and its smoother decision-making, among others.
The update, which started rolling out on Monday, also adds features like dynamic arrival pin adjustment. So far, early testers have reported buttery-smooth drives with confident performance, even at night or on twisty roads.
Owners highlight major improvements
Longtime Tesla owner and FSD user @BLKMDL3 shared a detailed 10-hour impression of FSD v14.2.2, noting that the system exhibited “zero lane change hesitation” and “extremely refined” lane choices. He praised Mad Max mode’s performance, stellar parking in locations including ticket dispensers, and impressive canyon runs even in dark conditions.
Fellow FSD user Dan Burkland reported an hour of FSD v14.2.2’s nighttime driving with “zero hesitations” and “buttery smooth” confidence reminiscent of Robotaxi rides in areas such as Austin, Texas. Veteran FSD user Whole Mars Catalog also demonstrated voice navigation via Grok, while Tesla owner Devin Olsen completed a nearly two-hour drive with FSD v14.2.2 in heavy traffic and rain with strong performance.
Closer to unsupervised
FSD has been receiving rave reviews, even from Tesla’s competitors. Xpeng CEO He Xiaopeng, for one, offered fresh praise for FSD v14.2 after visiting Silicon Valley. Following extended test drives of Tesla vehicles running the latest FSD software, He stated that the system has made major strides, reinforcing his view that Tesla’s approach to autonomy is indeed the proper path towards autonomy.
According to He, Tesla’s FSD has evolved from a smooth Level 2 advanced driver assistance system into what he described as a “near-Level 4” experience in terms of capabilities. While acknowledging that areas of improvement are still present, the Xpeng CEO stated that FSD’s current iteration significantly surpasses last year’s capabilities. He also reiterated his belief that Tesla’s strategy of using the same autonomous software and hardware architecture across private vehicles and robotaxis is the right long-term approach, as it would allow users to bypass intermediate autonomy stages and move closer to Level 4 functionality.
Tesla (TSLA) receives “Buy” rating and $551 PT from Canaccord Genuity
Waymo sues Santa Monica over order to halt overnight charging sessions
