Home Blog Will Tesla Cars Appreciate in Value?

Will Tesla Cars Appreciate in Value?

Will Tesla Cars Appreciate in Value?

True, Teslas are very expensive, and the most efficient Tesla can save you money from gas. But I was very speculative when Elon Musk claimed that Tesla cars are ‘appreciating assets’ due to their self-driving capability. Can this be true? In reality, automobiles do not appreciate with use, and as new models are constantly introduced, the prices of old models go down. Except, of course, you are talking about antique cars. So let’s see if Tesla’s really do appreciate in value.

Do Tesla Cars increase in value?

Brand-new cars lose a huge chunk of their value the moment you drive them off the showroom. And from there onwards, cars go downhill. Some slower and some faster than others. And electric cars? Well, as far as I understand, they go downhill much faster than their gasoline counterparts. It’s no secret that electric vehicles are expensive to repair and need their batteries replaced within a few years. And a battery costs as much as a new car. If you didn’t already know this, then head over to read this article about some truths about Electric Vehicles that car manufacturers don’t want you to know.

But we must agree that Tesla cars have overcome depreciating value to a certain extent. For example, Tesla’s Model S has been retaining its resale value far better than other gas burners or EVs. But are Tesla Cars appreciating over time, in reality? To quote the words of Elon Musk,

“The cars currently being produced….are capable of full self-driving.” Said Musk. “Buying a car today is an investment into the future. I think the most profound thing is that if you buy a Tesla today, I believe you are buying an appreciating asset-not a depreciating asset”

Firstly, it is true that Tesla constantly upgrades itself with the latest software updates. So a car that can enable more and more self-driving features could make a car more valuable than at the time of purchase.

But Elon Musk could also be hinting at something bigger, like the Tesla Network is up and running. The Tesla Network is an autonomous ride-hailing service where vehicles can go out and earn money when they are not in use by their masters. It seems unbelievable, but if it does come true, then Tesla cars would be revenue-generating assets for us.

But again, does this make increase the value of Teslas over time? The new coming cars will always be the show of the market, and old models are sidelined. Car companies naturally lower prices for their old models, so this still makes Tesla a depreciating asset.
Elon Musk also claims that the price of the ‘self-driving’ option will substantially increase over time, and that is why his cars will appreciate in value. So those who bought the system earlier will have paid less and will probably see their prices soaring in the future. And getting on the Tesla Network will be pricier.

Once the Tesla company’s vision as a transportation service is established, prices of rideshare customers will stabilize, and the potential revenue of vehicle owners will stay the same or even decrease as the fleet of vehicle grows. But on the other hand, it could be true that the resale value of gasoline cars will plummet due to increasing gas prices, global warming and the unavailability of fossil fuels.


After all, is this just a marketing gimmick by Elon Musk to encourage more people to invest in a Tesla? Can we really trust the word of car manufacturers who have every monetary benefit from our purchase? Does this complicated pricing system even make sense for an automobile? It does make sense to worry about these as sensible car buyers will always look for their resale value many years down the line when buying a car. But as far as the claims of Elon Musk are concerned, it’s a waiting game to see what the future has in store for us!

Are you worried about buying a second hand Tesla? Read this article to understand why pre-purchase inspection is important before buying a car.