Why Tesla sales have tanked and why the price will keep dropping...

Tesla prices have tanked and there's still more to come. I walk you through why the prices have fallen so fast and so much and the experience I went through with a novated lease and how you can avoid losing money in the future if you decide to lease a Tesla.

Skip Ahead:
Intro: 00:00
Background: 00:45
What caused it?: 02:39
Value for money?: 04:17
Paul's experience: 05:02
Paul's advice: 09:17

We review every new car on the market, bust car myths, cover the latest car tech and answer your burning questions.

Whether you need new car advice, purchase validation or simply love learning more about new cars and technology, we are your car experts.

You'll find us dropping new video content three times a week. If you'd like to ask a question about one of our videos, simply leave us a comment. If you'd like to give us any feedback on our content, feel free to email us, or alternatively, hit us up on social media.

Finally, we want this channel to grow with your support and feedback. If there's anything you don't like or would like to see us change, we'd love to hear from you!

Follow us on social media to see what we're up to and to ask any questions!

CarExpert:

Paul Maric:

#tesla #leasing

[steveallen]

There are plenty of people on Carsales trying to sell 2 to 3 year old Teslas for more than new ones. Perfect time for a Darryl Kerrigan quote: “Tell him he’s dreaming”.

[bradnewman]

Sorry but I have to chuckle at the description of cars being assets, except for some collectable classics all cars are liabilities that will always lose you money in the long run.

[silvaanosvs]

"When you are looking at what you are getting inside this car..."
Shows an image of an interior devoid of features. Brill.

[Zip_Silver]

Early tech adopters pay a premium. Lease buyers pay the highest premium. Look within your choices instead of blaming others or the market.

[jgreen]

What Paul describes about “what used to happen with Teslas” is standard with any new model of car with any drive system. For the first couple of years, they are built to fulfil advance orders. As production is ramped up some spare capacity is created and delivery times come down.
As for a “Tesla graveyard” 411, 000 built, 440, 000 sold doesn’t suggest stock is building up anywhere significantly at the moment.

[bretthunter]

Remember they "deduct" about $4.5K due to fuel savings over a 5yr period, so the drive away cost is actually $60K. A bit of a scam or con.

[kksyd]

Remember when people bought plasma TVs for $10K. Many years later the TVs were selling for $1K. Tenth of the price of early adopters with much better panels. EVs will continue to drop in price and the tech/battery will be substantially better. Chinese cars are so much better than they used to. Expect them to dominate the market. Especially in an economy where cash is tight.

[yendor]

“It’s actually incredible value for the money when you look at what you’re getting inside this car”…. Then proceeds to show pic of a stark, empty interior with nothing but a steering wheel and one screen off to the side 😅

[michaelharrington]

Great update. I was in the exact same situation as yourself. I ended paying out my 2yr lease early, and thankfully got out slightly ahead after wholesaling it off. However I won't be lining up for another ev until the charging infrastructure is upgraded and the pricing war stops. Tesla have shot themselves in the foot with their approach to pricing.

[OutsideYourBox]

30k loss after 2 years is nothing to scoff at. I for one could buy 2 cars that would work for 10+ years with that money...

[alastairhatt]

Why do people has 2 year leases when that where you lose the most money on cars. Of course you will be out of pocket you have to do longer leases of around 3 to 5 years to get the most out it and get value or buy outright and then see how much you lose.

[vichetkim]

It's quite ironic how old ICE vehicles typically fitted with a naturally aspirated V8 or diesel inline 6 appreciate in value while these over hyped allegedly state of the art vehicles depreciate like a hot knife in butter.

[jessexi]

Tesla had enjoyed the time when no one competed with it in the market. Now is the time to go face the reality 😂

[jm_leviathan]

Thanks Paul. Your balanced take on both Tesla and EVs more broadly is appreciated. I admit that I am financially rather naive. I can appreciate that Tesla's fluctuating prices have caused some difficulties for existing owners in relation to leasing arrangements and depreciation, but in good faith it is difficult to see these issues as more than unfortunate side-effects of a more broadly positive trend. EVangelists have been telling us for years that ongoing technological development, manufacturing economies of scale, and increased competition would combine to drive EV prices down over time, closing and perhaps eventually eliminating the purchase price gap between EVs and comparable ICE vehicles. To a considerable extent, that narrative has been borne out, but even at the time it necessarily implied high levels of depreciation for EVs currently on the market going forward. That is to say, to a certain extent this was a foreseeable outcome that perhaps should've factored into purchasing considerations at the time.

It should also be recognised that ICE buyers aren't protected from these disruptive developments either. Toyotas have historically retained more of their value over time than many other marques, yet as the superannuation ads are forever reminding us, past performance does not guarantee future results. In the context of ongoing EV disruption, how confident can one be that the future depreciation curve of an ICE or even Hybrid Toyota purchased today will look anything like that of one purchased ten years ago? I think the answer is not very.

[boxoffisa]

Meanwhile: number one selling car in the world is Tesla Model Y followed by Corolla. 😊

[marinoint]

Because several Chinese car companies have improved significantly over the years. While Tesla see little change, and it's lack of physical stalks/buttons a very user unfriendly.

[nickash]

Surely if you had a 5 year lease then you would have been better off? Highest depreciation is in the first 1-2 years even before the mfg decreases the list price. The price will continue to drop but the rate or size of the drop should slow.

[glennduncan]

Can't believe you sold your car for $44K. So lucky. Around Sydney, can't give them away at $30-$36, 000 depending on k's driven. Also agree, beware cars in white as a lot of used Hire cars now starting to come to market and with some having been very badly treated.

[jonnyjones]

Thanks for sharing Paul. As you speak from experience your points are far more credible. I have a Y too, a LR, and it’s a great car, which is great that you acknowledged this, and that your main issue is more with the Tesla business model. Are there any examples of ICE vehicles you could do a similar piece on? How are the residuals on the Raptor?

[doctorboy]

Paul you are regurgitating what we told you 7 years ago. Only difference is that we had the fortitude to say electric cards are shiiite.