The king is dead, long live the king. Those who own Maseratis are rejoicing today after they have learned their brand no longer sits atop the throne of depreciation. Instead, heavy is the head of Tesla.
A new study by ISeeCars reveals that Tesla is the highest depreciating brand year-over-year, and it’s not even close. The all-electric automaker beat out Maserati and Alfa Romeo, both brands that are known for heavy depreciation. I’m sorry in advance to all of the owners who bought at the top.
The study consisted of 1.8 million used cars (aged between 1 and 5 years) sold between February 2023 and 2024. ISeeCars assessed the value of the vehicles, the market they were sold in, and a myriad of other data to determine just how far used values have tumbled in 12 months.
At the top of the list sits Tesla, the pioneer of the mass-market EV. In just a year, the average price of a used Tesla fell from $51,323 to $36,515 across all models. This is a drop of 28.9% (or $14,808) year-over-year. That figure is more than three times that of Maserati and twice as much as Alfa Romeo. Sheesh.
So what gives, exactly? Why the big drop in the value of used Teslas? Karl Brauer, iSeeCars Executive Analyst, comments:
Used Teslas lost more value than any other brand, and with a 28.9 percent decline they lost more than twice as much value as second-place Alfa Romeo. Elon’s desire to maintain new Tesla sales through price cuts had a very destructive impact on the brand’s residual values.
It’s no secret that Tesla has been aggressive on its pricing. Hell, even the landscape of EVs has changed since last year. Many folks who couldn’t easily benefit from the $7,500 EV tax credit to their taxes can now apply it at the point of sale. That subsidy alone surely crushed used EV prices.
It’s important to note that it isn’t just Tesla dropping in value. All used EVs tend to depreciate heavily depreciating. It’s likely a product of the changing EV landscape, where products are substantially improving every year.
The study shows that while the average car dropped just 3.6% in value YOY, electric cars were hit harder. On average, used EVs dropped 31.8%. Leading the pack is the Chevy Bolt and Nissan Leaf, but not far behind was the Tesla Model X with a 24.6% drop, followed by the Model 3 at 24.1%, and the Model S at 20.5%. Note that the MSRP doesn’t include any relevant tax credits. Since many people are paying $7500 under MSRP for new vehicles, used prices for qualifying will almost always be significantly lower than the new car’s sticker price.
As for owners, well, we’re feeling it.
A year ago, the Model 3 Performance was $53,240. The last time an inventory car popped up on Tesla’s website, it was $48,700, according to Tesla Price Tracker. To make things sting a bit more, the M3P cost $62,990 in January 2023 and $78,000 when it launched in May 2018. Model X owners have it even worse. The lowest cost 2023 Model X Plaid on cars.com is $83,161. This time last year, a new Plaid was $119,990 after a price cut from $138,990 in January.
A recent study conducted by automotive experts has revealed that Teslas depreciate at a significantly faster rate than Maseratis or Alfa Romeos. This finding challenges the common belief that electric vehicles retain their value better than their gasoline-powered counterparts.
The study analyzed the depreciation rates of these luxury vehicles over a period of five years. Teslas were found to lose an average of 40% of their value during this time, compared to just 20% for Maseratis and 10% for Alfa Romeos. This drastic difference in depreciation rates highlights the unique challenges faced by electric vehicle owners when it comes to maintaining the value of their cars.
One factor that likely contributes to the rapid depreciation of Teslas is the rapid pace of technological advancements in the electric vehicle industry. As new models with improved features and performance capabilities are released each year, older Teslas quickly become outdated and less desirable to prospective buyers. This constant evolution in electric vehicle technology means that owners of older Teslas may struggle to recoup their initial investment when it comes time to sell or trade in their vehicle.
In contrast, Maseratis and Alfa Romeos are known for their timeless design, high-performance engines, and exclusive brand cachet. These characteristics help these luxury vehicles maintain their value over time, making them a more attractive option for those looking to invest in a high-end car that will retain its value in the long run.
The study’s findings serve as a reminder to prospective Tesla buyers to carefully consider the potential depreciation of their investment over time. While Teslas offer numerous benefits such as lower operating costs and environmental sustainability, owners should be aware that they may face significant losses when it comes time to sell their vehicle.
On the other hand, those in the market for a luxury vehicle that will hold its value may find Maseratis and Alfa Romeos to be a more appealing option. These vehicles offer a combination of sophisticated design, powerful performance, and brand prestige that help them maintain their value and appeal to discerning buyers.
In conclusion, the study’s findings shed light on the unique challenges faced by Tesla owners when it comes to vehicle depreciation. While Teslas may offer cutting-edge technology and environmental benefits, they also come with a higher risk of rapid depreciation. As such, consumers should carefully weigh the pros and cons of owning a Tesla versus a Maserati or Alfa Romeo before making a purchasing decision.