Tesla Model 3 retains almost 90% of its value over three years

According to a new study (link here), Tesla Model 3 retains almost 90% of its value over three years, which is five times better than other electric vehicles.

They came to the conclusion that the average vehicle depreciates 39.1% after the average car lease term of three years. For other electric vehicles, the average depreciation goes up to 59.2%."

One of the key reasons we bought our Tesla Model3 was its outstanding resale value, and why, on a Lease payment basis for our situation, it was the cheapest EV out there, bar the Nissan Motor Corporation's Leaf with 40 kWh battery.

It was also better than almost any other sedan on the market in percentage of value retained.

However, a quick look at online car classifieds reveals its closer to 75-80% after 2 years. As well, SR+ seems to be better than Performance, and those with FSD suffer more. Still excellent, but definitely not 90%.

Overall, one thing we should remember - well regarded, durable cars with strong demand and relatively tight supply will always do well on the used market. There's plenty of buyers who want an EV and can't afford new.

This is a massive shift in economics. All fleet managers now have the opportunity to shift their accrued depreciation to this new schedule saving loads of cash for businesses. This is a tipping point for the automotive industry, electric vehicles will become the top auto propulsion technology within this decade. Fleets dictate a lot of what happens in the auto/trucking industry.