‘Massive shock’: $100k Tesla’s value plummets as EV devaluation remains an ‘unknown’
Tesla’s Model 3 went for more than $100,000 five years ago - now owners are selling them for a staggering price for one brutal reason.
Tesla’s Model 3 went for more than $100,000 AUD five years ago - now owners are selling them for less than a quarter of the price as the residual values of EVs remain an “unknown”.
One 2020 Tesla Model 3 spotted for sale on social media this week was listed for $24,200, an almost 80 per cent devaluation. The car had a single owner and 138,000 kilometres on the clock. Other cars of the same year and model were listed in the $28,000-$30,000 range.
Rob Leigh from car comparison website thebeep.com.au said no other car model had lost its value so quickly.
He reckoned the creator of the $24,200 listing was “clearly struggling” to sell their Tesla.
“It’s a massive shock, but personally I doubt if it’s unexpected, because no one knew what these things were going to be worth,” Mr Leigh told news.com.au.
“The thing about Teslas is it’s still a bit of an unknown for everyone right now - and for EVs in general - when it comes to residual values.”
Mr Leigh said the leaps made in EV technology in recent years were responsible for the sheer drop in value. He drew comparison to early iPhones, which were quickly surpassed by newer models.
“The difference between the iPhone 16 and 17 is relatively minor, and we’re going to get that with EVs eventually.
“The increments will become less and less, so the devaluation will become less and less.”
Mr Leigh also believed the proliferation of Chinese EVs, often at cheaper price points, was hampering demand for Teslas.
Nowadays a new Tesla costs $60,000-$80,000 AUD, while rival Chinese brands like BYD, MG and Chery fall in the $40,000-$50,000 range.
“You can go out and buy a brand new Chinese EV for 40 grand now.
“It will definitely eat into market share, now that you’ve got so many other brands - and the Chinese stuff will get better and better.”
There are lingering apprehensions around the battery life and range of Tesla models, and some would-be customers have also been put off by Tesla CEO Elon Musk’s forays into right-wing politics.
Musk spent almost $300 million USD to back Donald Trump and other Republican candidates in the 2024 election.
After Trump’s victory, he assumed the role of the president’s “first buddy” and head of temporary goverment organisation the Department of Government Efficiency (DOGE).
Tesla’s share price tanked 30 per cent when Musk first endorsed Trump, and a grassroots “Tesla Takedown” movement emerged in protest against his political activities.
But the EV maker’s fortunes appear to have reversed since Musk fell out with Trump and departed his DOGE office in May, indicating he would reduce his political spending and focus on his companies.
“There was this big anti-Tesla sentiment, but now that he’s pulled back (from DOGE) I find it surprising how quickly people have come back to the brand,” Mr Leigh said.
Since Musk’s departure from Washington, Tesla shares have gone up by about 20 per cent.
He has also had a record-breaking pay package that could be worth nearly $1 trillion USD approved by shareholders.
Tesla has a busy year ahead, focussing on volume production of the Cybercab (robotaxi), the Tesla Semi (an electric semi-truck) and the Model 2, which might have a starting price as low as $42,000 AUD.
The company is also expanding production of its existing models, developing its humanoid Optimus robots and considering its own AI chip plant.
Originally published as ‘Massive shock’: $100k Tesla’s value plummets as EV devaluation remains an ‘unknown’
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