An expert in car buying is warning Tesla lovers not to buy the car new because he says it simply does not retain its value.
Pricey products that immediately depreciate as soon as they are no longer considered brand new can be a big risk for the consumer, and cars have always been among the things that fall into that category. But electric vehicles, as it turns out, might be faring even worse than other cars.
“I really don’t understand why anybody would buy a brand new Tesla,” TikTok user @pmoneyy21 tells viewers in a trending video. “The used car market of Teslas is coming down hard. You can buy a used Tesla, fully loaded, with less than 10,000 miles on it for half the price.”
Last year, iSeeCars released a study showing that electric cars lose their value at a higher rate than other categories of vehicles, dropping an average of 49.1% of the sticker price after five years. The Tesla Model S had the highest depreciation rate among EVs at 55.5%, or around the same depreciation as Twitter following Tesla CEO Elon Musk’s $44 billion acquisition of it in 2022.
@pmoneyy21’s example features a 2021 Tesla Model Y—a vehicle that hasn’t even been around long enough to have been included in the iSeeCars study. He claims that the used car listing he showed would probably ultimately go for around $30k, whereas the 2024 Model Y is around $65k brand new.
“That car is a $35,000 car. After two years, the person that purchased that car, the original owner, has taken almost a 50% loss on that vehicle,” he said. “Maybe a little bit more.”
Several of the TikToker’s viewers pointed out that one reason to be wary of buying a used Tesla is the battery—a replacement can cost up to $20,000 if the one already in the vehicle isn’t up to snuff or doesn’t last long. And they’re only covered by warranty for eight years or 150k miles (whichever comes first), so that’s a potential expense used Tesla buyers would want to be aware of.
But other responses demonstrated, in part, why depreciation on these vehicles may be happening so quickly.
“Why would you buy a tesla,” reads the top comment on the post, while another viewer insists, “You couldn’t pay me to drive a Tesla.”
“Can i drive 1000 miles without having to stop more than 30 minutes to refuel/recharge?” asked one commenter. “This is why I will never own one.”
“The insurance is gonna be hella high,” another pointed out.
@pmoneyy21 BUY USED TESLA NOT NEW!! #fyu #foryoupage #foryou #trending #viral #tesla #elonmusk #teslatok #teslamodel3 #models #plaid #cybertruck #used #cars #carsoftiktok #auction #tips #money ♬ original sound – pmoneyy21
@pmoneyy21 released another video just two days earlier warning viewers not to buy Teslas at all because of the depreciation, highlighting a relatively affordable auction that hasn’t even received any bids—a far cry from the high prices they initially went for upon release.
Over two million Teslas were recalled towards the end of last year over safety concerns regarding the autopilot feature. Another two million were recalled recently for not meeting federal safety standards, concerns have been brought up regarding decreased efficiency in cold weather, owners have been complaining about rust spots on the stainless steel Cybertruck Musk called “literally bulletproof,” and that’s just barely scratching the surface of reported issues with the vehicles and company.
“I feel bad for anybody that bought a brand new Tesla,” @pmoneyy21 says in the clip.
The Daily Dot has reached out to @pmoneyy21 via TikTok comment.