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Why does a Tesla have such high resale value?

Published

9 years ago

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If you buy an electric car that isn’t a Tesla, chances are you will take an enormous hit when it comes time to trade it in. According to Black Book, a 2013 Nissan LEAF is worth just 22% of its original MSRP. A five year old LEAF is worth a dismal 11% of what it cost new. A three year old conventional car is typically worth between 45% and 65% of its original cost.

Keep in mind that all calculations involving electric cars are skewed by the federal tax credit. What buyers paid for their car is often considerably less than MSRP after the credit is figured in. But even with that caveat, that used LEAF is typically worth about 30% of what a buyer paid for it three years ago.

“To be under 20 percent is fairly telling,” said Anil Goyal, Black Book’s senior vice-president of operations. “A lot of it has to do with demand.” Demand for used electric cars is suppressed by a number of factors. First is range. An early Nissan LEAF can only drive about 60 miles before range anxiety kicks in. The same is true of most other electric “compliance cars” like the Mitsubishi i-MiEV, Volkswagen e-Golf and Fiat 500e.

Another factor is the pace of improvements. When the personal computer first hit the market, upgrades happened so rapidly that the machine you bought in the morning was often obsolete by the time you got it home. Battery range has increased significantly in recent years. Black Book’s Goyal says used car buyers are just not that interested in a car that has less than 100 miles of range. The BMW i3 is included in that group.

A three year old Tesla Model S is worth 62% of its original value

Another factor is the chaotic nature of EV charging networks. Competing standards, lack of consumer information, and a welter of confusing charging plans cause anxiety for EV drivers. Which brings us to Tesla. A three year old Tesla Model S is worth 62% of its original value according to Black Book.

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Why? Several factors. First, over the air updates eliminate most of the fear that the car will be out of date in a year or two. Second, the Supercharger network assures Tesla owners that when they need to replenish their batteries while away from home, a free fast charging facility is nearby.

Barstow Supercharger

Tesla continues to aggressively expand its fast-charging Supercharger network across the world

A third factor is styling. Most manufacturers decided to give their first electric cars “Hey, look at me!” lines. But mainstream buyers want mainstream styling. The Tesla looks Model S and Model X look like the premium luxury cars they are. The forthcoming Model 3 has a pleasing, modern design that will make it stand out from other sedans without the weirdness of the BMW i3. Chevrolet tried making the original Volt look different, but decided to make the second generation more conventional in appearance. It’s hard to tell a new Volt from a new Chevy Cruze.

A number of car companies are planning to offer battery electric vehicles in the next 3 to 5 years. How will they fare in the used car market after the new wears off and they have tens of thousands of miles on them? That’s purely speculative at this point, but unless they have the build quality and reliability people expect, over the air updates to keep then current with technological changes, and the comprehensive charging networks needed to eliminate any hint of range anxiety, they are unlikely to retain their original value as well as a Tesla.

While everyone else is whining about how hard it is to sell electric cars and hedging their bets by building cars that can be powered by gasoline, diesel, plug-in powertrains, batteries, fuel cells, and pixie dust, Tesla is just going out and doing what needs to be done to make the electric car revolution a reality.

The numbers don’t lie. When it comes to selling electric cars that people want and that continue to hold their value as the years and miles go by, only one company done it successfully — Tesla. Everyone else is so far behind that by the time they catch up to where Tesla is today, Elon will be sending the first astronauts on their way to Mars.

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Lifestyle

Possible first glimpse of Tesla “Model 2” affordable car in Fremont Factory

The models that Tesla will release in the coming months will resemble the company’s current lineup.

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1 day ago

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April 27, 2025

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Image Credit: @metgodinwilderness7130/YouTube

During the Q1 earnings call, Tesla VP of Vehicle Engineering Lars Moravy set expectations on the design of the affordable models that the company is expected to launch this 2025. As per the Tesla executive, the models that Tesla will release in the coming months will resemble the company’s current lineup.

Drone footage from the Fremont Factory earlier this month might have provided the EV community its first potential glimpse at Tesla’s affordable cars–fondly dubbed by EV fans and analysts as the “Model 2” or even “Model Q”–or at least their components and overall shape.

The Sighting

Tesla watcher and drone operator Met God in Wilderness, who has been posting aerial videos of the Fremont Factory for years now, recently shared some footage from his drone flyovers this month. While the Fremont Factory was abuzz with activity as usual, a couple of rather strange vehicles were quickly spotted by EV watchers on social media.

During the drone operator’s flyover on the 17th, for example, an unfinished vehicle could be seen parked next to what appeared to be fully-built Model S and Model Y units. What was especially interesting was the vehicle’s roof, which seemed to be slightly narrower than the Model Ys around it. Based on the video, at least, the vehicle seemed to be shaped like a crossover as well.

Footage from the 24th of April also proved quite interesting, with the drone operator capturing footage of another cryptic vehicle. Unlike the mysterious, unfinished, crossover-esque car spotted on the 17th, this particular unit seemed to have a more sloping rear, at least based on the shape of its covering.

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What Lars Moravy Said

In Tesla’s Q1 2025 Update Letter, Tesla noted that “plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025.” Tesla also noted that the new vehicles will utilize aspects of its next generation and its current platforms. They will also be produced on the same manufacturing lines as its present vehicle lineup, likely the Model Y and Model 3. 

During the earnings call itself, Moravy specifically stated that the new models that would come out in the next months would resemble the company’s current vehicles. They will, however, be affordable. “Models that come out in next months will be built on our lines and will resemble, in form and shape, the cars we currently make. And the key is that they’ll be affordable, and you’ll be able to buy one,” Moravy stated.

Watch the drone operator’s footage from April 17 below.

The drone operator’s footage from April 24 can be viewed below.

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Elon Musk seemingly confirms Cybertruck gift to 13-year-old cancer fighter

Diagnosed in 2018 with a rare form of brain and spine cancer with no cure, the teen has undergone 13 surgeries by the time he was 12.

Published

2 months ago

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March 6, 2025

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Credit: Tesla

Elon Musk has seemingly confirmed that he will be sending a Tesla Cybertruck to 13-year-old Devarjaye “DJ” Daniel, a 13-year-old Houston boy fighting brain cancer. The teen was recognized as an honorary Secret Service member by U.S. President Donald Trump during his address to Congress on Tuesday. 

A Chance Meeting

The Tesla CEO’s Cybertruck pledge was mentioned during DJ’s short interview with CNN’s Kaitlan Collins. When Collins asked the 13-year-old what he told the Tesla CEO, DJ answered that he asked for a Cybertruck.

“I said, ‘can you do me a big favor, when you get back to Houston can you send us a Cybertruck down there?’” the cancer fighter stated.

Daniel noted that Musk responded positively to his request, which was highlighted by Collins in a post on X. Musk responded to the post with a heart emoji, suggesting that he really will be sending a Cybertruck to the 13-year-old cancer fighter.

Teen’s Cancer Battle Inspires

Diagnosed in 2018 with a rare form of brain and spine cancer with no cure, Daniel has undergone 13 surgeries by the time he was 12. During his speech, Trump highlighted the 13-year-old’s long battle with his disease. 

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“Joining us in the gallery tonight is a young man who truly loves our police. The doctors gave him five months at most to live. That was more than six years ago. Since that time, DJ and his dad have been on a quest to make his dream come true,” Trump stated.

Daniels officially received an honorary badge from U.S. Secret Service Director Sean Curran, to much applause during the event.

Surprisingly Partisan

While Daniels’ story has been inspiring, Trump’s focus on the 13-year-old cancer fighter has received its own fair share of criticism. MSNBC host Nicolle Wallace, while referencing Daniels’ love for law enforcement, noted that she is hoping the 13-year-old never has to defend the U.S. capitol against Trump supporters. “If he does, I hope he isn’t one of the six who loses his life to suicide,” Wallace stated.

Anti-Musk and Trump accounts on X have also thrown jokes at the cancer fighter’s honorary badge, with some dubbing the 13-year-old as a “DEI hire” that should be looked into by DOGE.

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Tesla owner highlights underrated benefit of FSD Supervised

Published

3 months ago

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January 31, 2025

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Credit: Tesla

Elon Musk has been pretty open about the idea of FSD being the difference maker for Tesla’s future.

If Tesla succeeds in achieving FSD, it could become the world’s most valuable company. If it doesn’t, then the company would not be able to reach its optimum potential.

FSD Supervised’s safety benefits:

  • But even if FSD is still not perfect today, FSD Supervised is already making a difference on the roads today.
  • This was highlighted in Tesla’s Q4 2024 Vehicle Safety Report.
  • As per Tesla, it recorded one crash for every 5.94 million miles driven in which drivers were using Autopilot technology.
  • For comparison, the most recent data available from the NHTSA and FHWA (from 2023) showed that there was one automobile crash every 702,000 miles in the United States. 

FSD user’s tale:

  • As per an FSD user’s post on social media platform X, FSD Supervised was able to help him drive a relative to a medical facility safely even if he was exhausted.
  • During the trip, the driver only had to monitor FSD Supervised’s performance to make sure the Tesla operated safely.
  • In a vehicle without FSD, such a trip with an exhausted driver would have been quite dangerous. 
  • “This morning, Tesla FSD proved to be an absolute godsend. I had to take my brother-in-law to the hospital in Sugar Land, TX, which is 40 miles away, at the ungodly hour of 4 AM. Both of us were exhausted, and he was understandably anxious about the surgery.
  • “The convenience of sending the hospital’s address directly from my iPhone to my Tesla while still inside my house, then just a single button press once inside, and 40 miles later we were precisely in front of the hospital’s admissions area.This experience really underscores just how transformative this technology can be for society,” Tesla owner JC Christopher noted in his post.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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