In 2019, Elon Musk claimed that Tesla automobiles would be “appreciating assets,” due to their high-tech features and autonomous driving technologies for the future. Flash forward to 2025, and that sentence is now laughed at, scorned, and altogether ridiculed. New data tells a story: Tesla’s used car values are rapidly falling, depreciating at a rate three times that of other automakers, CarGurus reveals.
Used Teslas have depreciated by an average of -7.26% each year, much faster than the average car in the used market. Once someone who offered up to 90 percent of their car’s price after three years has fallen out of favor, Tesla’s models now top the list, in the wrong way.
This decline is now manifested in the Tesla Cybertruck, formerly regarded as a ground-breaking electric pickup. Its value has fallen dramatically -58% year-over-year. Some portion of the crash is likely to be due to surging after-reseller prices in 2024 and the next crash in demand, but not an isolated incident. Tesla’s other models – Model 3, Model Y, Model S, Model X- also have depreciation rates ranging from -6.3 % to – 13.6 %.
These numbers echo a bigger story: Tesla’s whole range is depreciating quicker than all other brands in the market today.
Why the Sudden Freefall?
Multiple factors are eating into the downtrend of this rapid depreciation. While several pre-owned Teslas are entering the market, they are absorbing an abundance of supply, thus diminishing demand. Secondly, the EV marketplace competition has gone through the roof, meaning consumers have more options while featuring better qualities and lower price points.
And possibly the most surprising of all is Elon Musk. No longer viewed as a visionary, Musk’s increasingly polarising public image has started to seep into Tesla. Many former owners are voicing their dissatisfaction, with Reddit posts from ex-Tesla drivers citing Musk’s behavior as a primary reason for switching brands. Rivian, Kia, and Chevrolet EVs are among the most common replacements.
The Shift in EV Loyalty
Tesla is no longer the only one in the business of electric cars. The likes of Hyundai, Ford, and Volkswagen have come with solid EV products, bmw and Audi are into innovation. In fact, this month, Audi unveiled plans for a lower-priced EV based on one of its other vehicles, with a re-entry into a crowded market.
As a consequence, the number of drivers who were previously trapped in Tesla’s ecosystem is switching sides, and they love where they are going. For the first time, buyers are actively looking for non-Tesla EVs, not just for more features and less price, but for peace of mind.
Unfortunately, not all Tesla owners can afford to exit. Lots are still underwater on their cars and can not afford to take a huge loss by trading them in. As some stick by its side, others are stuck witnessing to their car’s value plummet in real-time, from which now appears a sinking ship.
Nevertheless, there may be something positive. For those who couldn’t care less about the brand image, used Teslas have never been cheaper. Turbo rounds out the list of the highest-ranking used car rental stocks in growth metrics, where former champ CarGurus, originally mentioned tout le fessie, has continuously fallen since July with a growth rate coming in at 12.48% for the trailing twelve months, has fallen significantly.
That being said, according to the folks at CarGurus, the average price for a used Tesla is around $29,552- nearly in line with the overall used car market average of $27,014.
