The price fell sharply over time
Elon Musk, who said that prices for Tesla electric cars would increase after purchase, which is a rare achievement in the auto industry, was proven wrong.
Musk made this statement in 2019: «If you buy Tesla today, I believe you are buying a valuable asset, not a depreciating asset.». He believed that self-driving features would make cars attractive over time and on the used car market.
As CNN reports, Tesla cars have become noticeably cheaper. Tesla Model 3 cost about $35,000 at the beginning of 2019. The car, like many others, has risen in value during the pandemic, but the average price of used models has now dropped to $29,000. Braden Wall, who lives in Colorado, bought a used 2020 Tesla Model 3 for $51,000 about two years ago. Recently he wanted to change it at a Tesla dealership, and he was offered only $22,000 for the car.
As CNN writes, the value of cars drops as soon as they leave the dealership. They lose nearly a fifth of their value every year after purchase, according to AAA.
Late last year, Tesla cut prices by almost 25% in an attempt to increase sales and cope with competition. Those efforts appear to have stalled, as Tesla sells about 56% of electric vehicles in the U.S. market, up from 80% in 2020.