In the USA, used Teslas start at €10,500

Due to an abundance of stock, Tesla vehicles are not holding their value in second-hand markets in the United States, where prices have plummeted.

There is one country where Tesla cars are worth half as much in used condition compared to France. A country where Teslas are everywhere due to their popularity, where VAT is sometimes exempted in certain states, and where prices are surprisingly low. That country is, of course, the United States.

In reality, the prices being offered simply indicate that the used car market is mature across the Atlantic. The depreciation is healthy, relevant, and in line with the mileage and wear rates of the vehicles. Thus, the starting prices pertain to Model S cars that are over 10 years old, when Tesla’s catalog was very limited.

Starting at $11,495, or €10,500, you can find 2013 Tesla Model S cars with a mileage of 177,000 kilometers (110,000 miles). This “P85 phase 1”, which appeared in 2012, offered a range of 426 km. An equivalent model from the same year and with similar mileage on La Centrale in France is priced starting at €22,000.

Grieving the Value

In France, there is a psychological block against pricing a Tesla fairly. The expensive new purchase leads owners to hope to mitigate depreciation in used sales. But the reality is harsher. Because of concerns that the battery has not been charged properly, that the cycles have not been respected, or that the loss of range exceeds expectations, many Tesla early adopters have opted for new models.

For a long time, there were very few Teslas available as used cars in France, which kept their resale value high. However, with thousands of sales, the Model Y and Model 3 are now flooding the market… and prices are collapsing.

Finally, the magic of the wider European market, the influx of Teslas from Northern Europe, where electric models are much more commonplace, is contributing to the accelerated depreciation of American cars.

So, will we see Teslas at €10,000 in France soon? Yes, it’s just a matter of time. That’s the direction of history.

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