Reply to post: Re: Research fail

Tesla hits Model 3 production speed bumps, slides to loss


Re: Research fail

Except that the stats on residual values are not comparable between Tesla and other cars manufacturers due to the halo effect that still surrounds Tesla.

Let's check back in in a few years when Tesla is just a.n.other car manufacturer like Renault, Ford, Jaguar etc. Assuming, that is, that Tesla is still making cars by then.

The reason other luxury marks have such high depreciation is similarly due to a halo effect, but of a more specific nature: That is, the prestige of been seen to be able to afford a new Jag, Merc etc. These are luxury marques where the initial value derives from that luxury.

A second hand Jag is even less desirable than a second hand Mondeo - every one buys second hand Mondeos (that's Fusions for our US cuzins). But if you are buying a second hand Jag then you are effectively admitting defeat, so the only time you buy a second hand luxury marque is when it's an absolute bargain. Otherwise people would rather save their money and bank the cache once they can afford the factory-fresh model.

Beyond the luxury marques you then have the performance/super car sector which again has a different psychological model for depreciation which in notable cases can actually result in negative depreciation - i.e. residual values go UP, not down.

And of course, Tesla's have the added sting in the tail of the cost of disposal.

Where-as most (commodity) cars take their biggest depreciation hit early in their life, I'd expect to see Tesla values follow a different curve, falling off a cliff toward the END of their life when they near the time that whoever is left holding the pink slip ball is the one facing the scrapage costs to safely and cleanly dispose of the exotic materials in the battery packs.

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