Ross Gerberthe President and CEO of Gerber Kawasaki Wealth and Investment Management it’s a Tesla TSLA bull, said Friday that the company already has a $25,000 car: It’s called a used Model Y.
What happened: “Tesla already has a $25,000 car. It’s called a used Model Y,” Gerber wrote on full self-driving).
The Model Y is the electric vehicle giant’s best-selling car. A customized Model Y currently starts at $43,990 for the base version. The Long Range version starts at $48,990 and the Performance variant at $52,490.
However, the Performance variant of the SUV was priced at a whopping $69,990 before the company began slashing prices in 2023. Gerber likely purchased his old Model Y for over $80,000 given the added price of FSD.
Speaking about the low resale value of Tesla vehicles, Gerber said: “Elon has cost Tesla electric vehicle owners tens of billions…” Older Tesla cars, Gerber said, are “underwater,” making trading in your old Tesla for a new one a less attractive option.
Looming Concerns about low resale value: Gerber isn’t the first to point out the low resale value of older Tesla vehicles. Car rental company Hertz Global Holdings has flagged the high repair costs of electric vehicles along with the vehicles’ low resale value among the reasons for phasing out Tesla vehicles from its fleet earlier this year.
“The average price of a used Tesla has declined for 19 consecutive months, from a record high of $67,900 in July 2022 to an all-time low of $33,913 today. That’s a 50% drop,” the chief market strategist said Charlie Biello from an asset management company Creative planning said at the beginning of February.
Tesla is currently working on a new electric vehicle that is expected to be priced around $25,000. Production of the vehicle is expected to begin in the second half of 2025.
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