Home Market News The Reality Behind Tesla’s $25K Car: Recognizing Value in Used Vehicles

The Reality Behind Tesla’s $25K Car: Recognizing Value in Used Vehicles

The Reality Behind Tesla’s $25K Car: Recognizing Value in Used Vehicles

Ross Gerber, esteemed President and CEO of Gerber Kawasaki Wealth and Investment Management, known for his bullish stance on Tesla TSLA, made a bold claim on Friday. According to Gerber, the elusive $25,000 Tesla already exists — in the form of a used Model Y.

Revelation Unveiled: Gerber confidently stated, “Tesla already has a $25k car. It’s called a used Model Y.” He even expressed willingness to part ways with his own 2020 Performance variant Model Y, decked in sleek black and complete with full self-driving (FSD) capabilities, for the astonishingly affordable price point.

The Model Y, Tesla’s reigning best-seller, currently kicks off at $43,990 for the base model, with the Long Range version tagged at $48,990 and the Performance variant at $52,490.

For context, the Performance variant of this SUV had a jaw-dropping price tag of $69,990 initially before Tesla initiated significant price cuts in 2023. It’s speculated that Gerber may have dished out over $80,000 for his older Model Y considering the premium FSD feature.

Reflecting on the depreciating value of Tesla vehicles, Gerber criticized Elon Musk for costing EV owners billions. He pointed out that older Tesla models are currently ‘underwater’, making trading them in for a new one less enticing.

Impending Concerns Over Depreciation: Gerber is not alone in raising alarms about the diminishing resale worth of aging Tesla cars. Notably, car rental giant Hertz Global Holdings ditched Tesla vehicles due to exorbitant repair costs and plummeting resale values earlier this year.

Chief Market Strategist Charlie Bilello from the esteemed wealth management firm Creative Planning highlighted the somber fact that the average price of a used Tesla has seen a steady 19-month decrease, plummeting from a record high of $67,900 in July 2022 to a record low of $33,913 today — that’s a staggering 50% drop.

Although Tesla is reportedly in the works to unveil a new EV with an anticipated $25,000 price tag, production is slated to commence in the latter half of 2025.

Explore more of Benzinga’s Future Of Mobility coverage by checking out the link here.

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