Tesla Depreciation and Resale Value: How Fast They Lose Value, by Model

Teslas lose roughly half their value in five years, but the Model 3 holds up better than any other EV. According to iSeeCars' 2026 analysis, the Model 3 keeps about 45.5% of its price after five years, the Cybertruck about 43%, the Model Y about 42%, and the Model S only about 35%. New-car price cuts are the biggest reason Tesla values can drop suddenly.

See your own car's value year by year:

Tesla depreciation by model

Source: iSeeCars 2026 analysis of 5-year depreciation from MSRP. The Model X falls between the Model S and Model Y.

Value after 1, 3 and 5 years

Using those 5-year figures on a smooth curve, here's roughly what a $50,000 Tesla is worth over time:

Real cars vary with mileage, condition, color, wheels, hardware and local demand. The calculator above adjusts for mileage and lets you enter your exact price.

Why Teslas depreciate faster than expected

• New-car price cuts. When Tesla lowers new prices, every used Tesla is suddenly compared against a cheaper new one. Owners who bought before big cuts saw values fall overnight.
• Tax credit changes. Federal EV credits changed what new and used EVs effectively cost; the federal credit ended for vehicles acquired after September 30, 2025.
• Fast technology change. New hardware (HW4), refreshed models and better range make older cars less desirable.
• Battery worries. Some buyers discount older EVs for battery fears, even though Tesla packs usually degrade slowly.
• Big supply. The Model 3 and Model Y are among the best-selling cars ever, so there's plenty of used inventory.

Model 3 vs Model Y vs Model S vs Model X

• Model 3: the best value retention of any EV, helped by a lower price and steady demand.
• Model Y: close behind, but Tesla's frequent Model Y pricing changes weigh on used values.
• Model S and Model X: luxury cars depreciate fastest, partly because buyers worry about out-of-warranty repair costs on complex, expensive cars.

Does FSD help resale value?

Purchased FSD can, because it stays with the car and saves the next owner a $99 monthly subscription. In private sales it can add a few thousand dollars, especially on HW4 cars. Subscription FSD adds nothing — it ends when you sell. Trade-in offers often credit little for FSD. See what's a used Tesla with FSD worth.

What it means if you're buying used

Fast depreciation is good news for used buyers: a two- to three-year-old Tesla often costs far less than new while keeping most of its battery and warranty. Look for cars with warranty left and verify FSD and hardware. See are used Teslas worth it.

How to protect your Tesla's resale value

1. Keep it clean and fix chips and curb rash before selling.
2. Keep service records and recent tire receipts.
3. Sell privately if you have purchased FSD — trade-ins often ignore it.
4. Time your sale away from big new-car price cuts when you can.
5. Consider gap insurance while your loan is higher than the car's value — see our gap insurance guide.

Frequently asked questions

Do Teslas hold their value?

The Model 3 holds value better than any other EV. Overall, Teslas lose about half their value in five years, similar to or slightly better than many luxury cars.

Why do Teslas depreciate so much?

Mainly Tesla's new-car price cuts, which reset what buyers will pay for used cars, plus rapid hardware and model changes.

What is a Model Y worth after 3 years?

Roughly 55–60% of its original price, depending on mileage and condition.

Which Tesla has the best resale value?

The Model 3, keeping about 45% of its value after five years.

The bottom line

Expect a Tesla to lose about half its value in five years — less for a Model 3, more for a Model S or X — with price cuts as the wild card. Run your numbers in the Depreciation Calculator and check trade-in value with the Trade-In Calculator.