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Used Tesla vehicles crush industry average depreciation despite price cuts

(Credit: Tesla)

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Used Tesla Model 3s and Model Ys aren’t depreciating nearly as fast as their luxury vehicle counterparts, despite five price cuts in the year’s first quarter.

One concern many Tesla owners have shared online following the series of price cuts implemented by Tesla is that their vehicles would, in turn, dramatically depreciate. However, according to a new report, that appears not to be the case. Moreover, Recurrent Auto, the company that published the report, has more good news for current and will-be Tesla owners.

The revelation regarding used Tesla depreciation was unearthed by Recurrent’s Q2 2023 Used EV Report, which it publishes quarterly to track used EV market trends. According to this report, the average used Tesla Model 3 and Model Y has only depreciated roughly 10% over the past three years, which is significantly less than counterparts from Mercedes, Lexus, and even Porsche.

Credit: Recurrent Auto

The shift from Teslas being appreciating assets to more typical depreciating vehicles has been a dramatic one. Still, other than changing the used EV market’s average price tag, which has continued to cool to just $38,000 in the second quarter of the year, it has also likely rapidly changed the Tesla ownership experience overall. Most prominently, Recurrent believes Tesla owners are holding onto their vehicles for longer than ever, which can be seen in the decreased number of used Teslas for sale.

This change in ownership length adds to the still strong demand for used Teslas, which remain the top choice for many buyers, only further exacerbating the decrease in available Model 3s and Model Ys. Recurrent reports that the number of used Tesla vehicles for sale has been cut in half since one year ago.

Outside of Tesla, Recurrent had more good news for will be EV-buyers. As mentioned above, the average used EV has continued to come down in price, now hitting just $38,000, which matches the average from August 2021. Further, despite the drop in the volume of used offerings from America’s favorite EV brand, the number of affordable EVs under $30,000 has doubled in the past six months.

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Credit: Recurrent Auto

What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!

Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla Model Y Standard: first impressions from a Premium owner

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Credit: TESLARATI

Tesla was nice enough to hook us up with the new Model Y “Standard” trim for a few days, and while we’ll be sure to fill you in on the full experience in the coming days, there are a lot of differences we noticed right off the bat, which make the ownership experience different from the “Premium” configuration level.

I purchased a Model Y Long Range All-Wheel-Drive back in August and took delivery just two weeks later. Through the first three months of owning my car, I’ve come to love so many things about the Tesla experience.

I traded my ICE vehicle for a Tesla Model Y: here’s how it went

However, I was interested in experiencing the affordable trim and seeing whether I would miss any of the voided features of the “Premium” Model Y.

Through the first 24 hours, here are my first impressions of the Model Y Standard as a Premium trim level owner:

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Overall Aesthetic

The lack of a light bar is not something that is a dealbreaker. In fact, I would argue that the Model Y Standard’s more traditional headlight design is just as pleasing from an aesthetic standpoint.

The car is great looking from top to bottom; there are not a substantial number of differences besides the lack of a lightbar on both the front and the back of the car.

Overall, it is a very sleek vehicle, but the major changes are obviously with the interior.

Interior Changes

This is where the big differences are, and some of the things I’ve gotten used to in the Premium are not included. If I didn’t have a Premium Model Y already, I’m not sure I’d miss some of the things that are not present in the Standard trim, but I believe I’d get annoyed with it.

Storage

The Premium has a large storage compartment between the cupholders and the wireless charger, which is not present in the Standard trim. Instead, it is more like the Cybertruck, as there is a pass-through and floor storage.

I think that the pass-through is nice, but the additional storage is something I take advantage of, especially as someone who films Full Self-Driving videos, which requires hauling mounts, GoPros, and other accessories.

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The sleekness of the Premium trim is also something I prefer; I really enjoy having the ability to close those compartments and cover the cupholders.

Obviously, this is a really trivial issue and not something that is substantially impactful from an ownership experience. If I weren’t already an owner, I am not sure I’d even have something to complain about.

Material Differences

The Premium trim seats are completely Vegan Leather, which I really do like, even as someone who doesn’t really love leather seats due to their temperature dependency.

The Standard trim features a Textile and Vegan hybrid, which has half of the seat a different material than the other.

The material is very similar to what I had in my previous car, a Bronco Sport. It was very durable, easy to clean, dried quickly, and hid a lot of things that leather does not, like oils from your skin, which constantly require attention to keep your interior looking fresh.

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The wireless charger is also a different material, as the Premium features an Alcantara material on that. The Standard has a rubberized and textured backing, which looks good, too. They’re both more than suitable.

Other Missing Features

The Standard lacks a few minor things, most noticeably is the ambient lighting. The biggest change, however, and something I really miss, is the glass roof.

A lot of people told me that when I got my Model Y, I wouldn’t even notice the glass roof after a few weeks. That could not be further from the truth. I look out of it all the time, and it’s one of my family’s favorite parts of the car.

My Fiancè and I really love parking and watching Netflix when we pick food up, especially when it’s raining, because the glass roof gives such a great view.

We also loved it as Fall arrived, because it was great to look at the foliage.

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Bigger Differences

There are also a handful of very noticeable differences from the overall cabin experience, especially with the sound system.

Much Weaker Sound System

The Model Y Standard has just 7 speakers and 1 amp, with no subwoofer. This is a significant step down from the 13-15 speakers in the Premium Long Range AWD Model Y, the 2 amps it comes with, and 1 subwoofer in the trunk.

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I usually like to listen to Long Time by Boston to test out a sound system, and it was noticeably weaker in the Standard. It was missing a big portion of the umph that is provided by the Premium’s sound system.

Cabin Noise

It feels like the Cabin Noise is definitely more noticeable in the Standard, which is something I really love about my Model Y. It is able to dampen so much road noise from louder cars, and I don’t feel as if it is very quiet in the Standard.

This is perhaps the biggest make-or-break for me with this car. I truly have been spoiled by how quiet the cabin is in the Premium, and it’s due to the lack of acoustic-lined glass in the Standard.

I will be doing a more in-depth review of the Model Y Standard, especially with ride quality, later this week.

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Tesla takes a step towards removal of Robotaxi service’s safety drivers

Tesla watchers are speculating that the implementation of in-camera data sharing could be a step towards the removal of the Robotaxi service’s safety drivers.

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Credit: Tesla

Tesla appears to be preparing for the eventual removal of its Robotaxi service’s safety drivers. 

This was hinted at in a recent de-compile of the Robotaxi App’s version 25.11.5, which was shared on social media platform X. 

In-cabin analytics

As per Tesla software tracker @Tesla_App_iOS, the latest update to the Robotaxi app featured several improvements. These include Live Screen Sharing, as well as a feature that would allow Tesla to access video and audio inside the vehicle. 

According to the software tracker, a new prompt has been added to the Robotaxi App that requests user consent for enhanced in-cabin data sharing, which comprise Cabin Camera Analytics and Sound Detection Analytics. Once accepted, Tesla would be able to retrieve video and audio data from the Robotaxi’s cabin. 

Video and audio sharing

A screenshot posted by the software tracker on X showed that Cabin Camera Analytics is used to improve the intelligence of features like request support. Tesla has not explained exactly how the feature will be implemented, though this might mean that the in-cabin camera may be used to view and analyze the status of passengers when remote agents are contacted.

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Sound Detection Analytics is expected to be used to improve the intelligence of features like siren recognition. This suggests that Robotaxis will always be actively listening for emergency vehicle sirens to improve how the system responds to them. Tesla, however, also maintained that data collected by Robotaxis will be anonymous. In-cabin data will not be linked to users unless they are needed for a safety event or a support request. 

Tesla watchers are speculating that the implementation of in-camera data sharing could be a step towards the removal of the Robotaxi service’s safety drivers. With Tesla able to access video and audio feeds from Robotaxis, after all, users can get assistance even if they are alone in the driverless vehicle. 

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Investor's Corner

Mizuho keeps Tesla (TSLA) “Outperform” rating but lowers price target

As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected.

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Credit: Tesla China

Mizuho analyst Vijay Rakesh lowered Tesla’s (NASDAQ:TSLA) price target to $475 from $485, citing potential 2026 EV subsidy cuts in the U.S. and China that could pressure deliveries. The firm maintained its Outperform rating for the electric vehicle maker, however. 

As per the Mizuho analyst, upcoming changes to EV incentives in the U.S. and China could affect Tesla’s unit growth more than previously expected. The U.S. accounted for roughly 37% of Tesla’s third-quarter 2025 sales, while China represented about 34%, making both markets highly sensitive to policy shifts. Potential 50% cuts to Chinese subsidies and reduced U.S. incentives affected the firm’s outlook.

With those pressures factored in, the firm now expects Tesla to deliver 1.75 million vehicles in 2026 and 2 million in 2027, slightly below consensus estimates of 1.82 million and 2.15 million, respectively. The analyst was cautiously optimistic, as near-term pressure from subsidies is there, but the company’s long-term tech roadmap remains very compelling. 

Despite the revised target, Mizuho remained optimistic on Tesla’s long-term technology roadmap. The firm highlighted three major growth drivers into 2027: the broader adoption of Full Self-Driving V14, the expansion of Tesla’s Robotaxi service, and the commercialization of Optimus, the company’s humanoid robot. 

“We are lowering TSLA Ests/PT to $475 with Potential BEV headwinds in 2026E. We believe into 2026E, US (~37% of TSLA 3Q25 sales) EV subsidy cuts and China (34% of TSLA 3Q25 sales) potential 50% EV subsidy cuts could be a headwind to EV deliveries. 

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“We are now estimating TSLA deliveries for 2026/27E at 1.75M/2.00M (slightly below cons. 1.82M/2.15M). We see some LT drivers with FSD v14 adoption for autonomous, robotaxi launches, and humanoid robots into 2027 driving strength,” the analyst noted. 

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