Cars / Tesla Model S

Tesla Model S depreciation in USA

A Tesla Model S loses about 21.6% of its value per year in USA. Buy one new for $75,000 and after 3 years it's worth roughly $36,118 (48% retained); after 5 years, about $22,191 (30%). Driving more than ~12,000 miles/year pushes resale lower.

By USA standards the Tesla Model S is among the faster-depreciating models, with steep losses in the early years, which is exactly what tips a buy-vs-rent decision one way or the other over a few years of ownership.

So should you buy it or rent it? At default assumptions the break-even long-term rental rate is about $1,855/month: rent below that and renting wins; above it, buying wins. Your price, financing, and mileage move this number, so run yours:

Estimated curve: calibrated model, not yet fitted from live listings

Buying wins · over 3 years

$0

cheaper than renting, all costs in.

Break-even rent: $1,855/month. Below that, rent; above it, buy.

Your deal
If you buy
If you rent
Cumulative net cost if you exit at month m; lower is better. Shaded band = resale-value uncertainty (10-90%).
020k40k60k1y2y3ybuying wins from month 26BuyingRenting

If you buy: $66,774 total

Down payment / cash price$75,000
Sales tax$5,250
Insurance$8,094
Registration$750
Maintenance$2,992
Opportunity cost of capital$9,000
Resale value (credit)−$34,312

Expected resale, net of selling costs: $34,312 (range $30,402 to $39,536)

If you rent: $75,240 total

Rental payments$75,240

Fuel and tolls are excluded on both sides; you pay them either way.

Tesla Model S depreciation in USA, by the numbers

Estimated new price$75,000
Annual depreciation rate21.6% per year
Estimated value after 1 year $58,787 (78% retained)
Estimated value after 2 years $46,079 (61% retained)
Estimated value after 3 years $36,118 (48% retained)
Estimated value after 5 years $22,191 (30% retained)
Typical resale range at 3 years $32,002 to $41,617
Break-even rent (default assumptions) $1,855/month
Data behind this curve calibrated estimate · 69 data points · R² 0.97

Figures assume a new purchase at typical mileage. The calculator above lets you set your actual price, age, odometer, financing, and holding period.

Frequently asked

How much does a Tesla Model S depreciate per year in USA?

Roughly 21.6% per year, based on our calibrated market model. Higher-than-average mileage accelerates the loss.

What will a Tesla Model S be worth after 3 years?

Around 48% of what you paid, about $36,118 on a $75,000 car at typical mileage (with a realistic range either side; we show a 10-90% band, not a single false-precision number).

Should I buy or rent a Tesla Model S in USA?

It hinges on the monthly rental rate you can get. At default assumptions (3 years, cash, 12,000 miles/year, 7% sales tax), the break-even is about $1,855/month: if you can rent below that, renting wins; above it, buying wins. Use the calculator to plug in your actual numbers.

Curve fit: calibrated estimate · n = 69 · R² = 0.97 · updated 2026-07-12 · methodology