Today, EVs are the most sustainable form of transportation, but depreciation is one of the risks that often come along with the thrill of ownership. Recently, automotive YouTuber Kyle Conner, known for his detailed EV reviews on his channel Out of Spec Reviews, faced a surprising financial hit with his Tesla Model S Plaid. Just two years after its purchase, the high-performance EV has depreciated by nearly $100,000—a notable amount for any car, let alone a high-end luxury car.
Tesla Model S Plaid Loses Nearly $100K in Value Over Two Years
Kyle Conner bought the Model S Plaid in 2022 for $140,940. It came with all the cutting-edge technology Tesla could offer: the new Autopilot 2.0 and 3.0, an upgraded cabin with leather seats, monthly software updates, and exciting upcoming over-the-air updates. With a staggering 1,020 horsepower, a top speed of 200 mph, and a 0-60 mph time of under two seconds, it quickly became known as one of the fastest production cars in the world.
Tesla Model S Plaid Achieved 0-60 mph in 1.99s on the Street
The Plaid model aimed to compete with high-end gas-powered sports cars, bringing the concept of all-electric performance to a new level. However in a shocking reveal by the YouTuber, where he mentioned that his Model S Plaid lost a staggering $94,340. This is approximately 67% loss of its original value, translating to about $2.54 lost per mile which is embarrassing.
Now the trade-in value of Kyle’s Model S Plaid is just $46,600 after two years of use and 37,191 miles of drive.
depreciation pic.twitter.com/3wZ0I9usYK
— Kyle Conner (@itskyleconner) October 27, 2024
Factors Contributing to Depreciation
There are several factors which can be responsible for this dramatic drop in value.
Tesla is notorious for regularly cutting prices of its new cars, which kills the value of a used car. example; for instance, to counter the rising competition and boost production capacity, Tesla lowered the price of some of its models; the Model S exerted pressure on used models such as Conner’s to drop in value.
Another reason is Tesla’s continuous updates and advancements. With Tesla regularly releasing new features and enhancements through software and hardware improvements, even recent models can feel outdated within a short timeframe. This is especially relevant in the case of the Model S Plaid, as Tesla has hinted at further advancements to its lineup, causing some buyers to hold off on purchasing older models.
Thirdly, a maturing market within the luxury EV segment also has an impact on the situation. Other competitors such as Lucid Motors, Porsche, and Mercedes Benz have entered the same high-performance electric vehicles, with cars having similar or better features. Now that buyers have more options this increase in competition also has likely affected the perception of the value of the Tesla Model S Plaid.
Conclusion
Several lessons can be learned from Conner’s experience in the preparation to buy high-performance EVs, specifically those from the luxury segment. Firstly, the upgrade points to the proper consideration of depreciation while acquiring a new EV because their usefulness is subject to the time factor, and the electrified vehicle market is very active with new models and unique features being released in the market frequently.
Potentially consumers would prefer to lease rather than buy or purchase a model that is one or two years behind to be able to take a hit on the loss.
One more lesson is to recognize how such brand policies as fluctuating base prices can affect resale value – as it occurs with Tesla cars. According to Black, the EV market may continue to place pressure on Tesla to ensure it remains the leader, risks that may lead to further price cuts.
Lastly, Conner’s case can also be used to illustrate what Tesla owners might experience in the resale market as competition stiffens. If it is all about performance, then buyers could still afford to pay the price for this appliance. But for those who are more concerned with how they can carry on maintaining their car’s value then the information provided will suffice to remind the owners to always be updated on the current market trends and how their car is likely to devalue.
