Tesla Model S beats all EVs in retained value
CEO of Tesla Musk appears to gets to keep his money in his pocket as NADA (national automobile drivers association) say that the Tesla Model S has retained all of its value within three years. Musk was said to be so sure his buyback program he backed it with his personal earnings and new car buyers seemed to have believed him with 57.2% representation of the retention market. Tesla credit this to the car not having many moving parts, a strong warranty  with no reports of frequent breakdowns.
Originally published on TeslaMondo.

To bolster Tesla’s buyback program, Musk guaranteed the Model S would hold 50% of its value after three years, and he backed the assertion with his own private money.

Looks like he’ll be keeping it, the rascal. NADA says that so far, the Model S beats all EVs* in retained value for one, two and three years. That’s an especially important metric for leases, for it can make or break profitability. A negative surprise at the end of the lease would mean the lessor undercharged for depreciation and likely lost money.

Used car buyers obviously have faith in the Model S even though it’s very new. Usually new kids on the block suffer badly until they’ve established a long track record of not breaking down or otherwise falling out of favor. But the Model S has very few moving parts, has a strong warranty, and constantly improves via over-the-air updates, so it ages very slowly indeed.

Surely these upcoming events will test Model S resale value:

1. Model X. When the world starts buzzing about it, will Model S become old hat?

2. Model III. Will people choose a smaller Tesla at half the price?

3. Model S version II. When will it come? Will it run circles around the current generation, for less money?

*NADA includes hybrid electrics in this comparison. Seems any vehicle with a plug becomes an “EV” to most of the world, even industry trackers.

Reprinted with permission.

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