Report: EVs, including Tesla, depreciate faster than ICEs

Electric vehicles may be better for the environment but not so much for the purse, especially for owners hoping to resell their cars. According to a study by iSeeCars, battery-powered automobiles are the most depreciating, losing 58.8 percent after five years, compared to an industry average of 45.6 percent.

The worst offenders in the auto industry are typically the luxury models. However, only two EVs depreciated less than the average within the segment. The Jaguar i-Pace, Tesla Model S, and Nissan Leaf shed 72.2 percent, 65.2 percent, and 64.1 percent of their suggested retail prices (MSRPs), respectively.

Other big electric losers include the Tesla Model X (63.4 percent), Tesla Model Y (60.4 percent), Porsche Taycan (60.1 percent), and Kia Niro EV (59.2 percent). The least losers are the Tesla Model 3 (55.9 percent) and the Hyundai Kona Electric (58.0 percent).

Lower used car prices could stimulate interest in pre-owned EVs. However, new car buyers might hesitate to spend on battery-powered cars if they don't hold their value, further slowing down EV adoption.

Rapid technological advancement, which is understandable as the segment is relatively new, contributes to EVs' faster depreciation. Some consumers also have concerns about battery degradation, which can lead to reduced driving range over time. Other factors are aggressive discounts from EV makers and weaker demand.

iSeeCars pulled data from more than 800,000 used cars sold after five years between March 2024 and February 2025 for the study.