When Kyle Conner, a YouTuber and electric vehicle enthusiast, purchased his Tesla Model S Plaid in 2022 for $140,940, he likely didn’t foresee the stunning depreciation his dream car would experience. After two years and 37,000 miles, Conner’s vehicle was appraised at just $46,400—a shocking 67% drop in value. This revelation has sparked widespread debate about Tesla’s resale value and the overall cost of owning the luxury EV.
The Shocking Depreciation
Conner, who runs the Out of Spec Reviews YouTube channel, shared his experience on social media, describing how Tesla itself appraised his car at $46,400. Even third-party sites like Edmunds and Consumer Reports valued the car no higher than $59,000. For perspective, a comparable 2022 BMW M5 CS, priced similarly at $140,000, has retained almost its full value, with most listings showing only a $10,000 depreciation.
Chris Pearce, an auto enthusiast and TikToker, highlighted the disparity in a viral video. “Tesla vehicles depreciate 70 times faster than some competitors,” Pearce claimed, citing a study that showed Tesla’s poor performance in maintaining value compared to brands like GMC and Porsche.
Resale Value Woes
While Tesla has garnered a loyal fanbase for its cutting-edge technology and eco-friendly appeal, this case underscores a critical issue with its long-term value. Pearce noted that depreciation this steep is unprecedented for vehicles in this price range. One commenter sarcastically remarked, “Yeah, but he saved $5,000 on oil and fuel. That should make up the difference.”
Despite the backlash, Conner remains a staunch Tesla supporter, criticizing the media for focusing on his car’s depreciation rather than his glowing reviews of other Tesla models. “There’s a huge hate bias in the media,” he posted on X.
Comparisons with Other Luxury Vehicles
The depreciation of Conner’s vehicle stands in stark contrast to other luxury sedans. For example, the BMW M5 CS not only maintained its value but also outperformed Tesla in terms of resale stability. This discrepancy raises questions about Tesla’s ability to compete with traditional automakers in the long run.
Adding to challenges are reports of high repair costs and reliability issues. Canadian owner Mario Zelaya famously called his $140,000 Tesla a “piece of trash” after discovering he needed a $26,000 battery replacement simply to unlock his car. “I’ll never buy another Tesla again,” Zelaya said, echoing concerns about the brand’s customer support and product reliability.
Strengths and Drawbacks
While Tesla vehicles are praised for their innovative features, such as Full Self-Driving (FSD) and impressive electric range, they are not without flaws. Reports of malfunctioning FSD systems, battery failures, and limited service options have tarnished the company’s reputation.
Brianna Janel, another Tesla owner, shared her frustration after becoming trapped in her car while updating the system software. Such incidents, while rare, highlight the limitations of Tesla’s high-tech approach.
What Driving Depreciation?
Experts suggest that Tesla’s rapid depreciation is tied to several factors, including fierce competition in the EV market, frequent software updates that can render older models outdated, and concerns about long-term battery health. “Depreciation for Teslas is diabolical,” remarked Pearce, adding that luxury competitors don’t face the same challenges.
The Broader Implications
Tesla’s depreciation dilemma reflects broader concerns about the electric vehicle market. While EVs continue to grow in popularity, issues such as high repair costs and uncertain resale values could hinder widespread adoption. For Tesla, addressing these challenges is crucial as it seeks to maintain its leadership in the EV space.
Despite the backlash, Conner remains optimistic. “Tesla has revolutionized the auto industry, but it’s clear they need to work on improving long-term value,” he stated.
Conclusion
Kyle Conner’s story is a cautionary tale for prospective Tesla buyers, highlighting the importance of considering long-term costs and resale value when purchasing an EV. While Tesla remains a trailblazer in innovation, the company must address growing concerns over depreciation and reliability to ensure its vehicles are not only cutting-edge but also sound investments.