It started with good intentions and a bit of EV hype. A Tesla Model Y buyer, now two and a half years into ownership, thought he was making a smart financial move. What he got was, in his words, a financial “water of blood.”
In a post on Reddit, the owner of a 2022 Model Y Long Range said he paid $62,990 for the vehicle at peak EV prices.
Fast forward to late 2025, and resale estimates for the Carvana at $36,800, the CarMax at $37,200, and Tesla’s own trade-in at $35,500 suggest a loss of $22,000 to $27,000 — or about $750 per month in just depreciation. This does not include insurance, charging costs, or routine maintenance. “I’m really shocked at how much these things are tanking,” he wrote.
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He admitted that he was caught up in common beliefs like “EVs hold good value” and “Teslas are different.” Now, he’s struggling to sell the car because of a job transfer, and he says he’s competing with brand-new Teslas that cost a few thousand dollars more than his used 41,000-mile one. “Why would someone pay $40,000 for my 2022 when they can get a 2025 for $44,000?” he asked.
Some commentators were not surprised. “You fell for the hype,” wrote one. Another pointed out that Tesla’s steep price cuts on new models have made used ones less attractive. “They can move new things,” said one, “why rent a better use?”
Tesla has famously positioned its vehicles as more than transportation. CEO Elon Musk Once the company’s cars will likely appreciate over time due to software improvements and autonomy features. One user referred to that claim sarcastically, saying, “Didn’t Musky say a few years ago that Tesla was the only car to admire?”
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Still, not everyone was critical. Some offered practical advice: keep the car. “You’ve already eaten the depreciation,” said one. “You can drive it until the wheels fall off.”
Others echoed that sentiment, noting that all new vehicles depreciate—especially in the first few years. According to LendingTree, most new cars lose 20% of their value in just the first year, with the average value dropping nearly 60% after five years.
However, electric vehicles have been hit even harder. 2024 data from iSeeCars reported across-the-board used car prices fell 3.6% year-over-year—but used EV prices fell 31.8%.
That’s nearly nine times the average decline, with Tesla leading the decline due to price cuts on new models, oversupply and evolving buyer expectations.
Some point out that buyers can benefit from federal tax credits, although eligibility depends on when and how the car was purchased. A 2022 Model Y could qualify for a $7,500 federal credit, which could soften the blow — assuming he uses it. Others note that business owners can write off EVs for tax purposes, although this is only valid under certain IRS rules and generally applies to Section 179 or bonus depreciation guidelines.
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While some buyers treat Teslas like an “investment” in technology, it’s important to remember that they’re still depreciating consumer goods. That reality hit this boss hard. “These things depreciate like smartphones, not cars,” he wrote. “Absolute madness.”
His final takeaway? He can only keep it. With battery health still at 96%, he’s considering driving it “into the ground” for the next few years. At this point, he said, it might be the smartest investment.
While Tesla’s ownership may not have some of the hoped-for investment, the companies that build the next Tesla — or the next iPhones — could. Cars and smartphones lose value, but startups chasing revolutionary technology often do the opposite. It’s a risk, sure – but unlike your car, it can actually appreciate.
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The article Tesla owner regrets thinking his EV was an ‘investment’—says he’s ‘really shocked at how much these things are tanking’ after losing $750 a month originally appeared on Benzinga.com.
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