When James, a 42-year-old tech enthusiast from California, drove home his brand-new Tesla Model S Plaid two years ago, it felt like a dream. Priced at $140,000, the high-performance EV boasted insane acceleration, sleek design, and cutting-edge technology. James considered it an investment in the future — and in style.

But that dream took a hard turn recently.

After just 37,000 miles of driving, James decided it was time to sell or trade in his car. He was considering an upgrade, or at least exploring his options. That’s when the shocking truth hit him.

The trade-in offers he received were between $42,000 and $48,000.

That’s over $90,000 lost in just two years — more than a 65% drop in value.

“I thought Teslas held their value better than this,” James said. “I’ve never seen a car depreciate like this, especially not one this new and in great condition.”

So, what’s going on?

Experts point to a few key reasons:

• Tesla has slashed prices multiple times since 2022, lowering the cost of brand-new vehicles and directly affecting resale value.
• Increased competition in the EV market means buyers have more options than ever before.
• And finally, technology in electric cars evolves so quickly that a two-year-old model can feel outdated compared to what’s currently on the lot.

Depreciation is normal for cars, but electric vehicles — especially luxury ones — seem to be taking a bigger hit lately.

For James, it was a harsh wake-up call. He’s now holding onto the Tesla longer than planned, hoping its value doesn’t plummet further.

Would you pay $140,000 for a car that drops $90k in two years?