While new cars are famous for depreciating in value as soon as they drive off the lot, Tesla’s Model S vehicle retains 57 percent of its original value after three years, according to valuewalk.com.
Tesla’s CEO, Elon Musk tweeted that the Model S also holds its value better than many gasoline powered automobiles.
Important to note that Model S resale value is also higher than that of gasoline cars
— Elon Musk (@elonmusk) June 23, 2015
Other electric cars like the Toyota Rav4 EV only holds onto 47.6 percent of its original price tag, according to data from the National Automobile Dealers Association.
Tesla offers the same prestige and performance as a luxury brand like BMW or Mercedes coupled with attractive tax credits. The federal government offers a $7,500 tax credit for purchasing a new or used Tesla and 8 states offer tax credits ranging from $2,500 to $11,200.
The value retention number could be boosted by Tesla’s resale value guarantee, which guarantees the value of a Model S after three years to be 50 percent of the base price plus 43 percent of the original price of optional extras.
This guarantee quelled the angst of many potential buyers in 2012 who felt they were stepping into uncharted waters when purchasing an electric super car since so many had flopped in the past.