How much will a Tesla car be worth in 10 years

By Isabella Storyclaire

last updated September 17, 2024

Contributions sourced from

Tesla is now worth more than $1 trillion

New YorkCNN Business

Tesla just became the sixth company in US history to be worth $1 trillion.

Shares popped more than 12% Monday to close at about $1,025, boosted by two spots of good news: Hertz announced a record order of 100,000 Teslas for its fleet, and influential Morgan Stanley auto analyst Adam Jonas recently raised his price target on Tesla to $1,200 a share.

That hefty one-day gain put Tesla (TSLA) justover the $1 trillion mark. That market capitalization is less than half that of Apple (AAPL), the most valuable company in the world at $2.5 trillion, and No. 2 Microsoft (MSFT), which is worth $2.3 trillion. Other members of the trillion-dollar club include Google parent Alphabet (GOOG), worth $1.8 trillion, and Amazon (AMZN), at $1.7 trillion.

Tesla is the second fastest company to hit the $1 trillion mark, reaching it just more than 12 years after its 2010 initial public offering. Only Facebook (FB), which needed just over 9 years from its IPO to reach $1 trillion, got there faster.

Apple took the longest, hitting the mark more than 37 years after it started trading in 1980, followed by Microsoft, which took a bit more than 33 years. Amazon needed 21 years, while Google reached the mark for the first time after 15 years. Its not uncommon for companies that reach the $1 trillion benchmark to slip back below it.

Tesla did on Monday surpass Facebook, whose shares are slipping following the release of a large trove of internal documents known as The Facebook Papers.

Facebook (FB) shares closed down more than 5% in Friday trading, and even with a modest rebound Monday are off 17% from the peak earlier this year when the company was valued at more than $1 trillion. Facebook (FB)s market cap closed Monday at $927 billion.

For Tesla, by contrast, Wall Streets excitement about the future of electric vehicles has pushed the companys market value to more than the 11 largest global automakers combined.

Tesla is worth more than three times as much as Toyota (TM), the second most valuable automaker, which has a market cap of about $280 billion, and boasts sales and profits that dwarf those of Tesla.

Last year Tesla sold only 500,000 cars worldwide meaning its current market value is equivalent to roughly $2 million per vehicle sold.

The company has already sold 627,000 cars so far this year, and is aiming to be close to a million sales for the full year. That would still equate to a valuation of more than $1 million per vehicle, but clearly investors are nonetheless betting Tesla will achieve its target of 50% or more in annual sales growth for years to come.

Tesla Model Y Depreciation

While the "Useful Lifespan" of a vehicle will vary greatly from one model to the next, and even one owner to the next, we have determined that twelve years is the most appropriate timeframe which will yield us good, usable data - and that any data beyond that timeframe becomes more dispersed, and ultimately less reliable. Moreover, maintenance costs beyond that timeframe become significantly more varied, as a vehicle owner's care of a particular vehicle will greatly impact its value, and ongoing . We are very much hopeful, however, that your car or truck will last well beyond twelve years, and that it gets you to where you want to go.

We aggregate and analyze millions of automotive data points from a variety of the industry's leading data providers. The insights and information on this page represent the overall averages of the combined costs of vehicle ownership. This information should be used as a general guide, as your individual results may vary significantly from that which is shown. Our mission is to provide car buyers with the resources they need to make informed purchase decisions. To learn more, see our FAQs.

Tesla Model 3 Depreciation

While the "Useful Lifespan" of a vehicle will vary greatly from one model to the next, and even one owner to the next, we have determined that twelve years is the most appropriate timeframe which will yield us good, usable data - and that any data beyond that timeframe becomes more dispersed, and ultimately less reliable. Moreover, maintenance costs beyond that timeframe become significantly more varied, as a vehicle owner's care of a particular vehicle will greatly impact its value, and ongoing maintenance costs. We are very much hopeful, however, that your car or truck will last well beyond twelve years, and that it gets you to where you want to go.

Electric car depreciation the ultimate guide

With the electric switchover on the horizon, you might be considering the future of your vehicle is it worth selling your petrol car in order to go electric? Will an electric car depreciate faster? While there are plenty of positives to being the owner of an electric car, not least lack of road tax, you should remember to consider the long-term logistics, and that means inevitable electric car depreciation. Or, perhaps youre thinking of selling your electric car in that case youll need to know how to get the best price.

What is car depreciation?

Car depreciation refers to your cars loss in value as it ages. In some cases you may find this happens the moment the car becomes yours, as it is now a second-hand vehicle and not brand new. Cars will lose value over time due to age and use, as well as general demand. For example, a three year old car that has done 60,000 miles will be worth less than a one year old car that has barely lapsed 10,000.

For some people, being certain of their cars resale value is key in their buying decision. Its pretty unlikely youll ever make back what you paid for a new vehicle, but some cars will make better returns than others. And thats no different when it comes to electric car depreciation.

What factors contribute to electric car depreciation?

Electric cars are subject to the same factors of car depreciation as a petrol or diesel car, but with some added extras due to their design. However, they can also enjoy the benefit of being one of the most in demand cars of the moment, and with premium brands like Tesla among current EV suppliers, buying an electric car may even be a better investment than a petrol or diesel model.

Electric car depreciation will generally be due to:

High mileage
Age
Interior and exterior cosmetic condition
Service history
Battery condition/age
EV type (hybrid, full etc.)

Electric cars are also subject to different incentives like government grants which in some cases can persuade people to simply buy new, therefore lowering the demand for used EVs. That said, its worth noting that some of these incentives have changed significantly as demand for electric cars has risen, so by 2035 there may be less resistance to buying second-hand.

Mileage, age & battery condition all affect an electric cars resale value

How fast do electric cars depreciate?

According to the AA, a new car will lose around 60% after its first three years at a mileage of 10,000 miles a year. This shouldnt be news to most car owners, as depreciation is simply a fact of life (and makes it even more important to get the best deal when you sell your electric car). While electric cars arent immune to this basic three-year rule, they have been performing notably well in recent times as ULEZ zones and trending brands help them retain value for longer.

Back when electric cars were first becoming popular, it was harder for them to hold value this was due to lack of demand from such a niche car. The Peugeot iOn and Citroen C-Zero, for example, both fared pretty poorly so far as residual value of electric cars is concerned due to being released at a time when public interest was low and charging stations were next to non-existent. Things have definitely changed since then, with over 20,000 electric car charging points around the UK. General performance has also improved, with better driving ranges per charge and quicker overall charging times. Of course, with the government hoping to have us all driving electric cars in 2035, future demand is guaranteed.

Electric cars depreciate slower than most petrol and diesel cars.

How long do electric car batteries last?

Electric car batteries last between 10-20 years. Thevital difference between a traditional fuel car and an electric car, the battery, is a reason behind their depreciation, too. Electric car batteries are essential to keep the car running, and if the battery is in poor condition, it directly impacts the value of the whole car.

The good news is that car batteries can be easily replaced, however, there are things which can see your battery degrade in condition faster:

Overcharging
Extreme temperatures
Charging immediately after driving without a battery cool-down period
Using only rapid chargers

Generally speaking, though, this shouldnt put you off buying an electric vehicle petrol and diesel cars are no more immune to the wear and tear that comes with decades of use.

Does brand matter when it comes to depreciation?

Yes. The more in-demand a brand is, the more likely it is to still be desirable even as a second-hand vehicle. This is why electric cars from Tesla and Mercedes can buck the trend when it comes to the 60% lost value rule. There are also other considerations like congestion zone rules and low emission zones that will ensure demand for EVs remains high in certain areas Oxfords new low emission zone, for example.

Other factors can also come into play, including a brands general customer appeal and its overall offering. Vauxhall, for example, while not a high-end brand, is doing well at staving off EV depreciation because it is a much-needed affordable, family-friendly entry in the UKs current range of electric cars for sale.

Which electric cars hold their value?

As with any other sort of car, electric car brands that are particularly sought-after will enjoy better value in the long run. According to cap hpi, some of the best electric cars for retaining value include:

Smart EQ ForFour

Arguably, Smart will always have an edge due to being a leading choice of compact car for city dwellers. And, considering the majority of electric car chargers are located in densely populated areas, this means Smart has a good chance of becoming the EV of choice for many urbanites. Reported to lose 57% of its value within three years, the Smart EQ ForFour comes up equal with standard fuel cars when it comes to depreciation.

Tesla Model X

It goes without saying that one of the worlds most in-demand brands has strong performance when it comes to electric car resale value. The Tesla Model X is one of the priciest entries in the brands catalogue and after three years is thought to lose only 43% of its value. Given current trends, theres good reason to think this car will give even stronger returns depending on each would-be buyer.

Hyundai Ioniq

Referring to the full-electric version of this Hyundai model, the Ioniqs place on the market as an affordable family car helps it keep a solid electric car resale value even three years in. Reported to lose 48% of value in that time, this model shouldnt have trouble finding a buyer.

Porsche Taycan

From a premium brand, the Tayan was reported as losing only 37% of its value in three years, which is an impressive feat compared to others on this list. Its worth noting with such high-end brands as Porsche that buyers may be thinner on the ground, but thats just another reason to sell the Motorway way and get your car in front of 5,000+ dealers.

BMW i3

The BMW i3 has been available for almost a decade now, but remains in strong demand, which is a good thing for those looking for a good resell price. The i3 is reported to lose a little over half its value in three years. Considering the i3 is still quite expensive to buy new, second-hand versions may find some keen buyers.

Tesla Model 3

Another entry from all-electric premium brand Tesla, the Model 3 is one of the brands best for withstanding EV depreciation (a little over 40% after three years)due to also being one of the most affordable in its catalogue, ensuring demand.

Polestar 2

Losing just 42% of value after three years, Polestar only offers one EV at the moment, and that is the Polestar 2. This air of exclusivity is also what is helping this model retain its value.

Volkswagen e-Golf

The Volkswagen e-Golf loses around 49% of value over three years thanks to finding plenty of demand from second-hand buyers looking for an affordable family-friendly electric vehicle.

Do electric cars have good resale value?

Yes, as interest in these vehicles has grown and the age of all-electric creeps closer, value is set to stay steady. In 2020 alone more electric cars sold from January to September than in the whole of the previous year, it was also reported that EVs are becoming the most affordable type of car.

Brands including Jaguar, Mercedes-Benz, Fiat, and Volvo all plan to have done away with non-electric cars by 2035. At the moment, electric cars are thought to retain about 48% of their original value after three years, which puts them marginally ahead of the combustion engine counterparts.

There is also the argument that what electric vehicles may lose to depreciation, they make up for in what they save you in running costs like petrol, as well as making owners exempt from other fees and tax.

Sell your car

If youve decided to switch your car to electric, you might have a car you want to sell first. Or, perhaps you want to sell your EV while it still holds good value. Whatever the case, do it the Motorway way. Dealers compete to give you their best price, and its easy, quick, and 100% free with no hassle.

Ready to sell your car?

Ready to learn more about valuing, maintaining, and selling your car?Check out more of our guides here, covering everything from hybrid and electric car depreciation, to converting your car to dual-LPG fuel.