Tesla Depreciation - Current and future valuations of Tesla Cars

Tesla is an American automotive and energy company founded in 2003 by Elon Musk, JB Straubel, Ian Wright, Marc Tarpenning, and Martin Eberhard. It began as a Silicon Valley start-up with a simple but ambitious mission: to accelerate the world's transition to sustainable energy. Launching its first electric vehicle, the Tesla Roadster, in 2008, Tesla shattered the prevailing notion that electric cars were impractical, ugly, and boring. With the Roadster's unprecedented range and performance, Tesla made electric vehicles not just viable, but desirable.

As Tesla transitioned from a niche automaker to a mainstream manufacturer, it diversified its lineup, introducing the luxury Model S and the Model X, both of which set new standards for electric range, performance, and onboard technology. Perhaps most notably, the introduction of the Model 3, a more affordable car, has propelled electric vehicles into the mainstream consciousness, making EVs accessible to a broader range of consumers.

Tesla’s influence extends beyond the automotive sector, with ventures into energy storage solutions like the Powerwall and Powerpack, as well as solar energy products. Moreover, the company's ongoing work on the development of full self-driving technology has the potential to revolutionise not just personal mobility, but transportation infrastructure as a whole.

Today, Tesla stands as more than just a car manufacturer; it is a multi-faceted technology giant with a focus on sustainability and innovation. Tesla's market capitalisation dwarfs that of traditional automakers, signalling a seismic shift in the automotive industry and an embracing of a future that prioritises renewable energy and intelligent design.

So, how does Tesla fare when it comes to valuations?

Model 3

This is the valuation graph for the 2023 Tesla Model 3 rear-wheel drive base model. Worth around £38,000 right now, the Model 3 is set to lose £19,000 in the next 5 years in depreciation, or 50.5%.

published

Model S

While the Model S is not on sale in the UK anymore, you can still pick up a used 2020 model for around £40,000. This is the valuation graph for the 2020 Tesla Model S all-wheel drive model. The Model S is set to lose £20,000 in the next 5 years in depreciation, or 50.2%.

Model X

Like the Model S, the Model X is not on sale in the UK anymore, but you can still pick up a used 2020 model for around £45,000. This is the valuation graph for the 2020 Tesla Model X all-wheel drive model. The Model X is set to lose £22,000 in the next 5 years in depreciation, or 50.7%.

Model Y

And finally, we have one of the most popular models of Tesla in the UK. The Model Y was the more affordable version of the Model X and due to the supply, you can now pick a used Model Y up for £35,000 with newer ones reaching up to £60,000. This is the valuation graph for the 2023 Tesla Model Y all-wheel drive base model. Worth around £46,000 right now, the Model Y is set to lose £21,000 in the next 5 years in depreciation, or 49.4%.

Since its inception in 2003, Tesla has emerged as a significant player in the automotive industry, especially in the electric vehicle (EV) segment. The company's journey from a Silicon Valley start-up to a major automotive and energy company reflects its commitment to its mission of promoting sustainable energy. Tesla's range of electric vehicles, including the Model 3, S, X, and Y, has been well-received in the market, although they exhibit typical depreciation values over a period of five years, akin to other vehicles in the industry.

The future impact and viability of electric vehicles, including those produced by Tesla, as a comprehensive solution for sustainable transportation remain subjects of ongoing discussion and debate. The automotive industry continues to evolve, with various manufacturers exploring different technologies and solutions to address environmental concerns and the global need for sustainable and efficient transportation.

Tesla's role in this evolving landscape is notable, but it's part of a larger narrative that includes diverse approaches and solutions being explored by various players in the field. The company's progress and the market's response to its products offer insights into consumer preferences and industry trends in the context of sustainable automotive solutions.