Tesla Model S Beats All EVs In Retained Value
Originally published on TeslaMondo.
To bolster Tesla’s buyback program, Musk guaranteed the Model S would hold 50% of its value after three years, and he backed the assertion with his own private money.
Looks like he’ll be keeping it, the rascal. NADA says that so far, the Model S beats all EVs* in retained value for one, two and three years. That’s an especially important metric for leases, for it can make or break profitability. A negative surprise at the end of the lease would mean the lessor undercharged for depreciation and likely lost money.
Used car buyers obviously have faith in the Model S even though it’s very new. Usually new kids on the block suffer badly until they’ve established a long track record of not breaking down or otherwise falling out of favor. But the Model S has very few moving parts, has a strong warranty, and constantly improves via over-the-air updates, so it ages very slowly indeed.
Surely these upcoming events will test Model S resale value:
1. Model X. When the world starts buzzing about it, will Model S become old hat?
2. Model III. Will people choose a smaller Tesla at half the price?
3. Model S version II. When will it come? Will it run circles around the current generation, for less money?
*NADA includes hybrid electrics in this comparison. Seems any vehicle with a plug becomes an “EV” to most of the world, even industry trackers.
Reprinted with permission.
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