Tesla Model S Has a Crazy Resale Value Even After 10 Years

The Tesla Model S entered the market 10 years ago and many people were quick to point out the car will be junkyard-bound since Li-Ion batteries will most probably be dead in three years tops. History showed they were wrong, as car batteries were nothing like phone batteries and can keep powering the car for many years to come. How many years? Well, the jury is still out on this one, but seeing how well the Tesla Model S examples from ten years ago fare even today, we’d say it will be for many years.

While a new Tesla Model S used to cost less than $60,000 ten years ago, now the price starts at $95,000. Not long ago, you could have picked a used one for a lot less. But this has changed in the past couple of years, and now you must pay around $30,000 for a 2012-2015 Model S with more than 150,000 miles. If you want something newer, like a 2016 Model S with 75,000 miles, you'll most likely get to the price of a new Tesla Model 3.

This is in stark contrast with other luxury sedans on the market. Capital One’s Auto Learning Center experts found out the resale value of the 2012 Model S is much higher compared to competitors like Audi, BMW, and Lexus – it’s still worth 38% of the original price of $57,400 compared to values less than 22% for the competition. A BMW 740iL that was originally priced at $71,000 is now worth $7,725 - just 11 percent of the original MSRP.

But what is it that makes people pay this kind of money for a 10-year-old vehicle? Besides the fact that we live in crazy times, with ridiculously high used-car prices, the Tesla Model S ticks some boxes that other comparable cars in its class don’t. According to Capital One’s Auto Learning Center, there are several reasons the Tesla Model S has such a massive lead over rivals in terms of resale value.

Among them, high on the list is how the Tesla Model S became a status symbol. It shows the world you have money but you are also open to innovation and ground-breaking technology. It also shows you care about the environment in a way no Prius owner does. Most importantly, the Tesla Model S evolved but it largely kept its original form. Few would argue you drive an old Tesla when you pull over in your ten-year-old Model S. At the same time, driving a prior-generation BMW or Mercedes-Benz only says that you can't afford the newest version.

There’s another reason, and this has to do with the fact Tesla people love their cars. They are die-hard loyalists that swear by their cars and do all the job for Tesla’s absent marketing department. They usually keep their cars a lot longer than other luxury car owners do. Perhaps this is because they see no reason for upgrading since the car updates itself with modern features via OTA. This reflects in the scarcity of Teslas on the used-car market, another reason for their elevated residual value.

Many Tesla Model S examples already show around 500,000 miles and we even know one with 1,000,000 miles on the odometer that is still in good shape today. This proves that new technology, when done right, does not have to be flimsy or finicky and empowers a car to sustain many years of abuse.