Elon Musk's Tesla EVs Found to Have Trait Their Owners Won't Like

It's a characteristic that affects other electric vehicles much less.

Recent price cuts for new Tesla  (TSLA) - Get Free Report electric vehicles have been popular with many buyers.

The lower cost for the automobiles, however, is having an effect on one important reality for owners of the vehicles.

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Owners looking to sell their Tesla cars are now doing so with an accelerated depreciation.

"The value of a new Model 3 with a long-range battery bought in January this year in the U.K. for £57,435 ($70,811) is forecast to fall 46 per cent to £31,300 ($38,590) by January 2024, according to industry pricing agency CAP HPI," The Financial Times (FT) reported March 28.

"This compares with only a 4 per cent fall over 12 months for the same model purchased in September 2021, which cost £48,435 ($59,729) new and was worth £46,300 ($57,096) a year later," the FT story said.

The CAP HPI data was for the U.K., but the trend has been experienced in other countries as well.

Second-hand car values have dropped in general in comparison to 2022, but depreciation values for Tesla vehicles has been more than for other electric automobiles.

"In contrast to a Model 3's predicted decline in value of 46 per cent, a £50,395 electric Polestar 2 bought in January will be worth about £33,000 ($40,689) at the start of 2024, a loss of £17,395 ($21,448), or 35 per cent, CAP HPI forecasts, according to FT.

The higher depreciation for Tesla automobiles means its cars can be more difficult to finance.

"Under lease or personal purchase agreements, motorists have to finance the value a car loses over a leasing period," writes FT.

"This arrangement, which accounts for almost all new cars sold in the UK and is increasingly popular across Europe and the US, results in higher prices for vehicles that suffer steeper depreciation."

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