What does a Tesla cost in 2024? Our Breakdown

Tesla has set the standard for electric vehicles, blending style with advanced technology. However, many potential buyers find themselves torn between buying a brand-new model and exploring the more budget-friendly second-hand market. This guide breaks down the specifics of Tesla's current models and dives into the pros and cons of the used Tesla marketplace. Additionally, this article will answer the question of what Tesla’s future holds.

Understanding Tesla’s Model Lineup

Overview of current models and their prices

Tesla Model S: A symbol of luxury and performance, the Model S is Tesla’s flagship sedan. Known for its long-range capabilities and rapid acceleration, it is a perfect blend of elegance and power. The Plaid variant takes it up a notch, redefining speed standards for electric cars.

• Standard: €94,990, 634km range, 250km/h max speed, 3.2 seconds 0-100km/h.
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• Plaid: €109,990, 600km range, 322km/h max speed, 2.1 seconds 0-100km/h.
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• Features: Mechanically, it showcases a blend of front and rear motors, swift 1-speed transmission, and quick-charging Lithium-ion batteries. Its exterior design boasts a sleek clear coat finish, 19" Tempest wheels, and adaptive LED lighting. Inside, occupants enjoy a premium 22-speaker audio system, multiple high-definition displays, and plush seating with versatile adjustments. The Model S prioritizes safety with an arsenal of driver-assist features, comprehensive camera systems, and multiple airbags. Tesla supports the Model S with warranties covering up to 12 years, ensuring peace of mind for its owners.

Tesla Model 3: Designed for everyday use, the Model 3 stands as a benchmark in the electric car sector. Affordable yet packed with features, it offers impressive range and speed. The Maximum Range variant ensures extended travel without frequent charging stops.

• Standard: €42,990, 513km range, 201km/h max speed, 6.1 seconds 0-100km/h.
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• Maximum Range: €51,990, 629km range, 4.4 seconds 0-100km/h.
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• Features: While its front seats promise comfort, the rear seating can be a tad cramped. However, this compromise in space is balanced by the vehicle's generous storage capabilities, especially when the rear seats are folded down. On the tech front, its infotainment system stands out with inclusion of popular platforms like Netflix and YouTube, but curiously omits AM radio and doesn't support Apple CarPlay or Android Auto. Safety-wise, the Model 3 remains at the forefront with its advanced Autopilot system and features like emergency braking. Lastly, buyers get peace of mind with a four-year general warranty, and an extended eight-year powertrain coverage.
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• Changes for 2024: The 2024 Tesla Model 3, dubbed "Project Highland," brings fresh exterior styling, an updated interior with a new rear touchscreen, and increased range, aiming for 480km on the base model and over 640km on the Long Range variant. It delivers outstanding performance, spaciousness, and access to the Supercharger network. The Long Range trim is recommended for its optimal balance of range and performance.

Tesla Model X: An epitome of electric SUV innovation, the Model X is known for its distinctive falcon-wing doors, spacious interiors, and incredible acceleration. The Plaid variant pushes the boundaries further, making it one of the fastest SUVs in the market.

• Standard: €99,990, 576km range, 250km/h max speed, 3.9 seconds 0-100km/h.
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• Plaid: €114,990, 543km range, 262km/h max speed, 2.6 seconds 0-100km/h.
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• Features: The 2023 Tesla Model X has a unique, almost buttonless interior with a big central touchscreen. It features a special yoke steering wheel but also offers a regular one. The large windshield gives clear views from front to back. Some feel it's not luxurious enough for its price. The car has tech like Autopilot for hands-free driving and Summon for remote parking. Safety features include emergency braking and lane warnings. The warranty is good, but there's no free maintenance.

Tesla Model Y: A versatile SUV, the Model Y caters to those who seek performance without compromising on space. With a sleek design and advanced tech, it's designed for families who don’t want to compromise on speed or efficiency. The Performance variant is built for speed enthusiasts who also need space.

• Standard: €44,890, 455km range, 217km/h max speed, 6.9 seconds 0-100km/h.
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• Maximum Range: €54,990, 533km range, 5.0 seconds 0-100km/h.
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• Performance: €60,990, 514km range, 250km/h max speed, 3.7 seconds 0-100km/h.
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• Features: The 2023 Tesla Model Y is a simpler version of other Teslas. It has a basic design with a big screen on the dashboard for controls and entertainment. There's a large tinted roof window, and you can choose to have an extra row of seats. The car comes with safety features like Autopilot for semi-automatic driving. The warranty lasts for four years or up to 80,000 km, and there's a longer eight-year warranty for the battery. However, regular service checks aren't free.

What are the Tesla Prices in 2024?

Tesla is planning a significant price reduction for its vehicles by 2024, particularly for the Model 3, which is being further developed under the "Highland" project. The price is expected to drop below €27,500 after tax credits.

The company is working on a smaller, more cost-effective vehicle, which could cost around half of the current Model 3/Model Y, bringing the price down to about €15,800, while still maintaining a 20% margin.

Cost savings are being achieved through improved manufacturing processes, optimized material costs, the use of casting techniques, reduction of wiring, cheaper tires and wheels, and possibly transitioning to sodium-ion batteries.

The aim is to create an affordable, efficient, and powerful electric vehicle that can compete with traditional gasoline cars while also reducing environmental impact, making it an attractive option for car buyers who value efficiency and sustainability.

The Used Tesla Resale Prices

The recent trend in the used car market has seen a significant decline in Tesla's resale prices. Previously, owning a new Tesla and reselling it quickly could earn a profit, due to high demand and limited availability. However, this scenario is rapidly changing.

Several factors have contributed to this shift:

1. Price Decline: According to CarGurus, the average price of a used Tesla has decreased by 26% since July 2022, going from €71,489 to €52,592. This substantial drop is even more pronounced in some specific models. For example, the used Model 3 now averages at €42,514, and the Model Y is around €57,874.
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2. High Mileage Deals: 2017/18 Model 3 versions with a high mileage can now be purchased for less than €26,316. Moreover, a 2019 Model 3 with under 96,000 km is priced around €31,579.
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3. New Tesla Incentives: With Tesla introducing significant price cuts on their new models and an additional tax credit available for the Model Y, the allure of buying a brand-new Tesla is becoming more attractive than opting for a used one.
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4. Market Dynamics: A report from Reuters revealed that while previously a Tesla could be sold for more than its purchase price, this is no longer the case. Factors like rising gasoline prices due to the Ukraine war and Tesla's aggressive price hikes have initially driven up the demand. However, as fuel prices stabilize, interest rates increase, Tesla's production output grows, and competition from other EV makers intensifies, the prices of used Teslas are dropping faster than new ones.
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5. Economic Concerns: While Tesla's decision to reduce the prices was attributed to achieving economies of scale, there is speculation that newer versions of Model 3 and Y are on the horizon. Additionally, with economic uncertainties looming, some individuals, like software engineer Greg Profitt, are leaning towards purchasing used Teslas to save money.

In essence, while Teslas once held a premium resale value due to their unique position in the EV market, increased competition, and changing market dynamics are now putting downward pressure on their resale prices. This trend, combined with Tesla's own pricing strategies, has burst the used car price bubble for the brand, potentially affecting the demand for their new vehicles.

Should You Buy a Used Electric Car? Pros & Cons

The Advantages

Purchasing a used Tesla comes with several appealing benefits. Firstly, there's a notable cost savings aspect. Opting for a second-hand model can lead to substantial reductions in the initial investment compared to buying new. Moreover, much of a car's value decreases in its initial years, so by buying used, you sidestep this rapid depreciation. Another advantage is the car's easy to check performance; with battery analytics being available with for example quick battery checking and internal car data, having a track record allows potential buyers to gauge the vehicle's reliability and any issues that might have arisen for its previous owner. Furthermore, even in the second-hand market, opting for a Tesla reaffirms an eco-conscious choice, as these vehicles remain a greener alternative, promoting a reduced carbon footprint in contrast to traditional gasoline cars.

The Disadvantages

While there are several perks, purchasing a second-hand Tesla isn't without its drawbacks. A primary concern is the battery life. As with all electric vehicles, the battery's capacity can wane over time, which could impact its range. There's also the matter of warranty; depending on the car's age and how it's purchased, there might be limited or even no warranty left, which could lead to unexpected repair costs. Technological advancements move rapidly, meaning older Tesla models may not boast the latest tech features or updates seen in the brand's newer offerings. Lastly, unless procured from a certified dealer, there might be an element of uncertainty regarding the car's maintenance history and overall care.

Annual Ongoing Costs of Tesla Ownership - Used and New

In Germany, Tesla owners face varied ongoing costs. Charging, with electricity at €0.47 c/kWh, averages €705 annually for a Model 3 driven 10,000km. Government incentives exempt pure EVs from motor vehicle tax until 2030. Tesla comprehensive insurance may exceed €1,000 yearly. Other expenses include seasonal tire changes (€200-€500 annually), regular maintenance (around €600 yearly), professional cleaning (about €250 per year), and home charging system checks (€100 annually). Combining these, the average yearly Tesla ownership cost, excluding purchase or loan payments, is roughly €2,255 to €3,155, varying by individual usage and local prices.

When buying a second-hand Tesla, there are some specific costs and considerations to keep in mind:

• Battery Health Inspection: It's essential to gauge the health and capacity of the vehicle's battery, especially in older models. An inspection can cost around €150 to €250, but it's a crucial step in determining how much life is left in the battery.
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• Warranty Extension or Purchase: While new Teslas come with a manufacturer's warranty, this may not be the case for second-hand purchases, especially for older models. Depending on the vehicle's age, you might consider extending the warranty or purchasing a new one, which could cost upwards of €1,500 annually.
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• Previous Wear and Tear Repairs: Depending on the condition of the second-hand Tesla, you might need to address any wear and tear issues that weren't fixed by the previous owner. This could include things like paint touch-ups, dents, or minor interior fixes. The costs for these can vary widely based on the extent of the damage.
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• Software Updates: Older Tesla models might not be up-to-date with the latest software. While Tesla often provides free over-the-air updates, certain major updates might come at a cost.
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• History Report: Before finalizing your purchase, it's a good idea to obtain a full vehicle history report to ensure there are no hidden issues or past accidents. This can range from €20 to €50.

Wrapping Up: The Summary

New Tesla Models Purchase Costs in 2024 in Germany

• Tesla Model S Dual Motor: €107,090
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• Tesla Model 3 - Maximum Range: €68,540
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• Tesla Model X Dual Motor: €114,090
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• Tesla Model Y Performance: €67,740

Used Tesla Purchase Costs

Prices vary based on factors like age, condition, and remaining warranty. For instance with the Model S:

• 2022 Tesla Model S: €63,000
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• 2021 Tesla Model S: €45,000
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• 2020 Tesla Model S: €36,775
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• 2019 Tesla Model S: €32,900
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• 2018 Tesla Model S: €23,999
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• 2017 Model S: €21,999

Conclusion

Owning a Tesla is a statement of luxury and a nod to environmental consciousness. While new models come with the latest features, the used market offers an accessible way to join the Tesla community. As the electric vehicle world evolves, understanding these choices ensures a satisfying and informed purchase.

FAQs

Is it more economical to buy a new Tesla or a second-hand model?

While new Teslas offer the latest features and full warranties, second-hand models provide significant cost savings, especially given the rapid depreciation in the initial years. Your preference between the latest technology and potential savings will determine the best choice.

What are the main concerns when buying a used Tesla?

The primary concerns include the remaining battery life, the extent of the warranty left (if any), potential absence of the latest tech features, and uncertainty about the vehicle's maintenance history.

How has the resale value of Teslas changed over recent years?

Historically, Teslas had a high resale value due to demand and limited availability. However, increased competition, changing market dynamics, and Tesla's pricing strategies have caused a decline in used Tesla prices recently.

Are these significantly reduced Tesla prices for 2024 guaranteed?

While Tesla is actively pursuing price reductions for its Model 3 and a new, smaller vehicle, final prices for 2024 are projections subject to market conditions and unforeseen challenges, and buyers should stay updated with official Tesla communications.