YouTuber Kyle Conner, known for his channel Out of Spec Reviews, recently had his Tesla Model S appraised and was shocked by the steep depreciation. Originally purchased in 2022 for $140,000, Conner expected a decent return but was floored when Tesla valued it at just $46,400—a loss of $94,000, or 67% of its original price. TikToker Chris Pearce (@thechristopherpearce) covered the details, noting that even other appraisal sources like Edmunds and Consumer Reports wouldn’t offer more than $59,000. To illustrate the difference, Pearce compared Conner’s Tesla to a BMW M5 CS, which, bought at the same price in 2022, now retains nearly all its value. A study by Diminishing Value Carolina also revealed that Tesla vehicles depreciate significantly faster than brands like GMC and Porsche, with other fast-depreciating models including Alfa Romeo, Maserati, Lincoln, and Volvo. Tesla owners on Reddit shared similar experiences, expressing disappointment over the rapid depreciation of their vehicles.

Conner’s experience serves as a cautionary tale for potential Tesla buyers, highlighting the importance of understanding the potential depreciation of electric vehicles. While Tesla cars are known for their cutting-edge technology and sleek design, it seems that their value may not hold up as well as some other luxury brands. This may be due to the rapid advancements in electric vehicle technology, leading to outdated models losing value quickly as new features are introduced.

It’s also worth noting that the resale value of a car is affected by a variety of factors, including mileage, condition, and market demand. Conner’s Tesla may have depreciated so quickly due to high mileage or wear and tear, factors that can significantly impact a car’s value. Additionally, the popularity of Tesla vehicles may have led to oversaturation in the market, driving down prices for used models.

For those considering purchasing a Tesla or any other luxury vehicle, it’s important to do thorough research on the potential depreciation and resale value. Understanding the market trends and factors that impact a car’s value can help buyers make more informed decisions and avoid the shock of steep depreciation.

While Conner’s experience may be disheartening, it’s important to remember that a car’s value is not the only measure of its worth. The enjoyment and utility that a vehicle provides can outweigh any financial losses in the long run. And with advancements in electric vehicle technology continuing to evolve, it’s possible that future Tesla models may hold their value better than current ones.

In the end, it’s important for car buyers to weigh their priorities and consider all factors when making a purchase. Whether it’s a Tesla or another luxury brand, understanding the potential depreciation can help buyers make a more informed decision and avoid any surprises down the road.