A one-year-old Tesla can now be worth thousands less than it was when new, but the latest used-car data shows there is no single depreciation rate that applies across the lineup.
The difference can be surprisingly large. Current Kelley Blue Book estimates show the 2025 Tesla Model 3 Long Range losing about 1% of its estimated value over the past year, while the Model 3 Performance has lost about 26%. That gap matters for both owners thinking about selling and shoppers looking for a lightly used EV.
The numbers also highlight an important point about Tesla’s used market: Tesla’s 1-year depreciation depends heavily on the exact model and configuration, not simply on the badge or the vehicle’s age.
Tesla’s 1-year depreciation can vary by thousands
Kelley Blue Book currently estimates that a 2025 Tesla Model 3 Long Range has a private-party resale value of about $37,000, compared with $37,576 in its earlier valuation. That works out to an estimated one-year decline of $576, or roughly 1%.
The Model 3 Performance presents a very different picture.
KBB estimates its current resale value at approximately $41,700, down from an earlier value of $56,630. The estimated loss is $14,930, or about 26%.
Those figures aren’t predictions for every individual car. KBB calculates depreciation using values for comparable vehicles and market data, while mileage, condition, location and other factors can change the value of a particular Tesla.
Still, the contrast is significant.
| Model | Current estimated resale value | Estimated 1-year depreciation |
|---|---|---|
| 2025 Model 3 Standard | $34,400 | $1,870 / 5% |
| 2025 Model 3 Long Range | $37,000 | $576 / 1% |
| 2025 Model 3 Performance | $41,700 | $14,930 / 26% |
The figures represent estimated U.S. market values and are not guaranteed selling prices.
Why Tesla values have been moving so much
Tesla’s resale market has faced an unusual combination of pressures.
Used electric vehicles compete directly with new EVs, and changes in new-car pricing can quickly affect what buyers are willing to pay for an older example. When the price of a new vehicle becomes more attractive, used versions have to compete against that lower entry point.
That can accelerate depreciation.
Tesla buyers also tend to have access to frequent changes in configurations, equipment and pricing. As the new-car market moves, the value of an older Tesla can change even though the vehicle itself has not changed.
This is one reason a one-year-old Tesla shouldn’t automatically be valued by taking its original purchase price and subtracting a standard percentage.
The market doesn’t work that way.
The Model 3 is showing a wide spread
The latest estimates are particularly interesting for the Model 3 because different versions are behaving very differently.
The 2025 Model 3 Standard has an estimated current resale value of about $34,400 and a trade-in value of roughly $31,400. KBB puts its depreciation over the past year at about $1,870, or 5%.
The Long Range version has performed much better by comparison. Its estimated private-party value is around $37,000, while the estimated trade-in value is approximately $34,800.
The Performance model is the outlier.
Although it remains considerably more valuable than the other Model 3 versions in absolute terms, its estimated depreciation is much larger. KBB puts its current resale value at about $41,700, down roughly $14,930 from the earlier valuation.
For used-car shoppers, that could make a lightly used Performance model worth investigating. For an owner who bought one new, however, the depreciation can represent a substantial financial hit after only a year.
Mileage and condition still matter
A depreciation estimate is only a starting point.
Two identical Teslas can have very different values if one has significantly higher mileage, a history of accidents, worn tires or cosmetic damage. Service history and the condition of the interior can also influence what a buyer or dealer is prepared to pay.
Private-party value and trade-in value should also be kept separate.
A private buyer may pay more than a dealership offers because a dealer needs to account for reconditioning and resale costs. That means owners shouldn’t assume that a published private-party estimate is the amount a dealership will put on a trade-in offer.
The most useful valuation is the one attached to the actual car being sold.
A one-year-old Tesla still has plenty of warranty coverage
Depreciation is only part of the used-Tesla equation.
Tesla’s current U.S. warranty provides four years or 50,000 miles of basic vehicle coverage, whichever comes first. Battery and drive-unit coverage extends considerably longer, although the exact mileage limit varies according to model and configuration.
For example, Tesla currently lists eight years or 100,000 miles for certain Model 3 and Model Y versions, while several higher-specification configurations receive eight years or 120,000 miles. Tesla also provides a minimum 70% battery-capacity retention provision during the applicable battery and drive-unit warranty period.
That makes a one-year-old Tesla different from many older used cars. A buyer can potentially acquire a vehicle that has already absorbed some depreciation while retaining substantial factory warranty coverage.
The exact warranty attached to a particular car should always be confirmed using its vehicle documentation and configuration.
Depreciation isn’t the whole ownership story
The lower purchase price of a used Tesla can be attractive, but buyers should look beyond the sticker price.
Electricity costs depend on where and how the car is charged. Someone charging primarily at home may have a very different running-cost picture from an owner who relies heavily on public fast charging.
Insurance is another major variable. Premiums depend on the driver, location, coverage and vehicle, so an older Tesla isn’t automatically inexpensive to insure.
Maintenance can also differ from a conventional gasoline vehicle. There is no traditional engine oil-change schedule, but EVs still require attention to tires, brakes, suspension, cabin filtration and other wear items.
The condition of the battery is another sensible check when buying used, although Tesla’s long battery and drive-unit warranty provides important protection for eligible vehicles.
Is buying a 1-year-old Tesla a better deal?
Sometimes, but not automatically.
The biggest advantage of buying used is that the first owner may have already absorbed a significant portion of the initial depreciation. That is especially relevant for versions such as the Model 3 Performance, where current estimates show a substantial decline in value.
But buyers should compare the used vehicle with a new Tesla before deciding.
A large depreciation number doesn’t necessarily mean a used car is a bargain. If Tesla’s current new-car pricing, financing or incentives narrow the difference, the case for buying used becomes weaker.
The reverse is also true. If a clean, low-mileage one-year-old Tesla is priced well below a comparable new vehicle and still has significant warranty coverage, it can offer a compelling middle ground.
What Tesla owners should check before selling
Owners considering a sale should get more than one valuation.
Start with the vehicle’s mileage, exact trim and options. Then compare trade-in estimates with private-party values and, most importantly, obtain actual purchase offers.
The difference between an online estimate and a real-world offer can be meaningful.
It is also worth remembering that depreciation isn’t necessarily linear. A vehicle that loses a large amount of value during its first year may not continue losing value at exactly the same rate every year afterward.
Market conditions, new Tesla pricing, interest rates, EV demand and the supply of used vehicles can all change the equation.