EVs are depreciating much faster than gas-powered cars
3 days ago
- #resale-value
- #sustainability
- #electric-vehicles
- The resale value of electric vehicles (EVs) is collapsing globally, affecting private owners and fleet operators.
- BluSmart, India’s all-electric ride-hailing service, collapsed in April amid financial fraud, flooding the market with EVs sold at steep discounts.
- Tesla Model Ys in the U.S. depreciated 42% in two years, while Ford F-150 trucks depreciated only 20%.
- EV depreciation is largely tied to uncertain battery lifespans, unlike gas cars with established valuation metrics.
- A U.K. study found 3-year-old EVs lose over half their value, compared to 39% for gas cars.
- Hertz reported a $2.9 billion loss in 2024 due to plummeting EV values, selling Teslas bought for $40,000 at under $20,000.
- Fleet operators face existential risks as EVs lose value unpredictably, threatening business models.
- Tesla retains better resale value than Chinese brands like BYD, Nio, and XPeng due to brand strength.
- EV depreciation varies by region, with stronger resale values in EV-friendly markets like China and Norway.
- Battery-as-a-service models are emerging to stabilize costs for fleet operators.
- McKinsey reports low consumer interest in EVs in the U.S. and Europe, despite fleet electrification pledges.
- Battery durability is improving, with only 1% of post-2016 EVs needing replacements, boosting confidence in used EVs.
- Certified pre-owned EV programs and battery health reports are aiding market transparency and stability.