The Tesla Model 3 was ranked number 1 on a new study that analyzed the value retention of vehicles on the market. The Model 3 only showed a depreciation of 5.5% compared to the price of a new unit. That’s half the depreciation compared of the second-ranked vehicle on the study’s Top 10 list, the incredibly popular Ford Ranger pickup truck.
The study from iSeeCars.com noted the difference in value between two Model 3s manufactured a year apart was only $2,529. That’s just roughly the price of a few options from Tesla’s online configurator, like paint and white seats. With prices this close, there will likely be very little incentive for prospective EV buyers to opt for a second-hand Model 3.
One of the key motivations for buyers of second-hand cars is the supposed low price of the used vehicles themselves. Cars are notorious for losing a significant part of their value as soon as they are driven off the lot, and generally, electric vehicles see an even steeper depreciation. But for Tesla buyers, the high value retention of the company’s vehicles means that most of the time, it becomes far more practical to acquire a brand new Model 3 from the electric car maker.
This is something that was highlighted by iSeeCars CEO Phong Ly in a statement. “Instead of buying a car that’s already been driven for one year, consumers can buy the new version of select vehicles with a purchase price of just a few thousand dollars more to avoid the uncertainties that come with purchasing a used vehicle,” he said.
The iSeeCars CEO has valid points. There are notable uncertainties when one purchases an electric car. A second-hand car whose previous owner was careless may be prone to more issues compared to a new vehicle, for example. Apart from this, purchasing new cars offer a lot of benefits to consumers, since buyers will have full control on what their cars will be equipped with, from its interior to software-based features such as the Full Self-Driving suite.
The benefits of new Teslas extend beyond the cars’ buyers as well. The electric car maker benefits from operating a fleet of vehicles that are comprised of mostly new cars. Tesla is known for incrementally improving its vehicles to an almost obsessive degree. This means that when it comes to Teslas, it is always in the best interest of consumers to purchase the latest cars to make sure that they are getting the best tech and features available.
Does this mean that there is no place for Teslas in the second hand market? Definitely not. Second-hand Teslas will likely play a valuable role in the years to come, considering that the company is still expanding its presence across the globe and is yet to enter some large markets like India. Tesla is on a path towards a future where it could eventually produce millions of cars every year. Once this happens, Teslas will likely become ubiquitous enough that the second-hand market for the company’s electric cars will be friendlier to buyers.
Second-hand Teslas can also play a huge role in the company’s Robotaxi Network, which will utilize vehicles for ride-hailing services. For owners who wish to operate several Robotaxis, even the small savings offered by pre-owned vehicles will go a long way to ensure that their return of investment is quick. For now, though, and as long as Tesla is demand constrained, buyers can expect the Model 3 to resiliently retain its value years after it is purchased.
If there is anything shown in iSeeCars’ recent study, it is that Tesla is breaking stereotypes once more. A separate study from the firm showed that electric vehicles depreciate by 56.6% in three years, significantly more than 38.2% average depreciation across most petrol vehicles. Tesla has bucked this trend, however, with its entire lineup of vehicles like the Model 3, Model S, and Model X.
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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
