Introduction
One of the original ‘disruptors’ in the motoring world, Tesla have long since established themselves as one of the forerunners in technology, refined, minimalist luxury and second-to-none ev innovation. Sadly, like most cars, Tesla can be impacted significantly by depreciation.
In recent times, Tesla’s popularity (as a whole) in the UK has fallen quite dramatically, dropping around 9% since 2024, as drivers opt for the growing plethora of Chinese alternatives, so how does that impact the brand’s resale values?
In this guide, we’re examining the depreciation levels of the most popular Tesla models on the market (based on available data), comparing their initial retail price and used resale values.
First, though, let’s take a look at some of the basics.
What Are The Best Selling Tesla Models? (2025)
- Tesla Model Y
- Tesla Model 3
- Tesla Model S & X
According to SMNT, the most popular Tesla models in 2025 were the Model Y and 3, with 24,298 and 21,188 sales. However, that number is much lower than 2024, where both sold roughly 11,000 more units between them.
Both the S and X models have recently been discontinued, so we can’t say for certain how they fare in terms of sales. Our data on the two is compiled from previous years.
What Causes Car Depreciation?
Depreciation can come down to several things.
Mileage is often a major part, especially if it’s higher than average or the car has passed a milestone such as 100,000 miles.
The number of previous owners, the type of use it’s had, its make and model, service and MOT history, and general wear and tear can all affect its value too.
Increasingly, fuel type and running costs are part of the picture, with diesels, for example, losing value more quickly in some parts of the market.
None of these factors tells the whole story on its own. You can take steps to help your car hold its value, but avoiding depreciation altogether is unlikely.
We’ve looked at the subject in more detail in our guide: Why Do Cars Depreciate?
Are There Any Other Downsides To Depreciation?
Depreciation & Car Finance
Most drivers understand that depreciation negatively impacts the overall value of your vehicle, meaning it will be worth less whenever you decide to sell it or trade it in as a part exchange.
If you’ve purchased your Tesla using finance, however, further complications could arise, which you may not be aware of, particularly if the level of depreciation outpaces your total finance balance, leaving you in ‘negative equity’, where the amount owed is greater than the value of the vehicle.
For example, a Tesla Model Y, financed at £25,000 with repayments of £250 per month, will have an overall balance of finance left after 12 months of £22,000 (£25,000 - 12 x £250). In that time though, the car could have depreciated by £5,000, being worth just £20,000, leaving a shortfall (the ‘negative equity’) of £2,000 (£22,000 finance balance - £20,000 car value).
This can make selling or trading in your car more difficult, and more costly, as that shortfall still needs to be paid.
If you’re part-exchanging, a dealership may offer to ‘roll’ that negative equity into the finance for your next car. However, you’ll then be paying off the old shortfall alongside the cost of your new vehicle, which can mean higher monthly repayments.
If you’d prefer to sell your car outright, the outstanding finance will need to be settled as part of the sale. You’ll have to cover any gap between the sale price and the amount you owe, leaving you out of pocket.
We’ve covered this in more detail in our guide: Buying, Selling & Trading In A Car With Outstanding Finance.
Depreciation & Total Loss or Write-Off
Depreciation can also cause issues if your car is ever declared a total loss (or ‘write-off’) by your motor insurer. This typically happens after an accident, theft or fire, where the car is unrecoverable or deemed too expensive to repair.
When this happens, your motor insurer will usually offer you the current market value of your car, which, due to depreciation, could be less than the amount you originally paid or still owe on finance (as we’ve discussed above).
This is a problem as you won’t be able to pay off the finance balance, or replace your car (like-for-like) without contributing further money yourself (topping up the shortfall).
Tesla Gap Insurance provides optional cover against this type of situation. It pays out the difference between your motor insurer’s final settlement figure (typically, based on the vehicles’ current market value) and the amount you still have outstanding on finance, or the amount needed to replace the vehicle, depending on the policy you choose.
Read More: The Complete Gap Insurance Guide.
How Much Does The Average Tesla Depreciate?
Depreciation levels vary from model to model, depending on the factors we’ve discussed above. However, as a general rule of thumb, Audis will depreciate around 15-35% in the first year, rising to 50% over three years.
If you want a general overview of depreciation, try our Free Depreciation Calculator.
Read More: How To Improve Your Car Resale Value.
Depreciation In The Best Selling Tesla Models (2026)
Tesla Model Y
The Tesla Model Y retails between £41,990 and £62,000, depending on specification. Long range models tend to be more expensive, but that extra mileage can alleviate range anxiety, making them a decent choice for anyone regularly driving motorway miles.
Does that extra convenience represent better resale values?
We analysed the depreciation levels of the Long Range AWD (one of the most readily available models on Autotrader), which costs £52,000 from new, and found that it lost £7,419 with one year of ownership, averaging a resale value of £44,580.
In year two, that loss rises to a massive £23,254, with average resale values of £28,746.
That represents a depreciation level of 14.3% in year one and 44.7% in year two.
- New Price: £52,000
- One Year Old: £44,580
- Two Years Old: £28,746
Tesla Model 3
When the Tesla Model 3 first launched in June 2019 it was an instant hit. That popularity hasn’t waned, with the Model 3 still being in the top 10 best-seller list 7 years later.
That buyer demand should mean better residual values, but does that play out in reality?
Here, we’ve used the Long Range Auto RWD model, which, again, provides extra range, reducing reliance on excessive charging and a little more practicality than standard models.
In year one, the average Model 3 depreciates 21.3%, losing £9,683. In year two, this rises to £21,336, representing a depreciation level of 47.4%
- New Price: £44,990
- One Year Old: £35,307
- Two Years Old: £23,654
Tesla Model S
Tesla’s luxury offering, the Model S combined industry-leading technology with increased cabin space, high-end audio and a pioneering 17-inch display. At it’s release, it was a genuine contender for the established German marques.
Sadly, the range was discontinued in mid-2026, as Tesla chose to focus on autonomous ride-sharing and artificial intelligence.
A discontinued model typically means a reduction in available parts and lower demand on the second-hand market. So if you’re on the hunt for a Model S, be warned that it may start to depreciate more rapidly.
Here, we’ve had to calculate our depreciation differently, using models from 2019 only. That showed an understandably high depreciation level of 79.4%
- New Price: £75,850
- 2019 Model: £16,318
Tesla Model X
Another Tesla model which has sadly been discontinued in favour of focusing on other avenues, the Model X was the SUV option within the brand’s range.
7 seats and ‘faclon’ wings, coupled with a refined interior and a rapid 0-60 of (at most) 3.9 seconds, the Tesla Model X was always a ‘mixed bag’. That lack of focus, whilst offering something for everyone, could mean it’s mismatched on the used market, resulting in lower residual values.
As with the Model S, sadly, there’s no recent data available to calculate depreciation of one and two-year-old models. Instead, we’ve based our findings on 2020 and 2019 models, which depreciated 42.9% and 46.1%, respectively.
- New Price: £45,260
- 2020 Model: £25,820
- 2019 Model: £24,388
What Are The Highest Depreciating Tesla Models?
In our study, we’ve only included the Tesla Model Y and Tesla Model 3, as these can still be purchased new. The highest depreciating Tesla models are:
- Tesla Model 3: Highest depreciation based on a percentage of initial value (21.3%)
- Tesla Model 3: Highest depreciation based on overall amount lost (£9,683)
Our Methodology
Throughout this depreciation guide, we used the new, standard list price (RRP) of one consistent model variation (per model). For example, when comparing the new, year one and year two prices of a Tesla Model 3, we ensured we only compared the Long Range, AWD variant throughout, removing any misleading price differences from other variants, such as a Performance or Rear Wheel Drive version.
We looked at the selling price of the same models on the used market (via Autotrader), with an average mileage of 8,000 per year (so, 8,000 miles in year one and 16,000 miles in year two). This wasn’t always feasible, but mileage was kept between 5,000 and 15,000 miles where possible.
Depreciation has been calculated using the amount lost as a percentage of the RRP.
Considerations: Our method doesn’t account for any discounts, sales, or offers that may be available from time to time. Our method also doesn’t consider any extras that may be added to each available used model.
Where possible, we have avoided any used car declared a write-off in any category.
Our Final Word
Tesla are well known for pioneering technology and, despite growing competition from Chinese manufacturers, still lead the way in customer perception when it comes to EVs. Sadly, like most cars, the brand isn’t immune from depreciation, with our study showing how resale values can vary wildly, depending on the model you choose and it’s availability.
Although Tesla’s line-up is small, our figures point to a familiar trend: higher-priced models tend to lose value more quickly. Here, it’s the Model Y, echoing a pattern we’ve seen across several brands in our depreciation guides.
Whether you’re buying new or used, depreciation can make a sizeable difference to the cost of owning your car, so it’s worth doing a little research before you commit.
We wouldn’t choose a Tesla on resale value alone. But if you’re weighing up two models, their track record for holding value could help you decide.
Treat our figures as a snapshot, rather than a forecast. We’ve compared consistent variants and broadly similar mileages wherever possible, but actual values will depend on the used-car market, dealer discounts, optional extras and each car’s condition.
