Tesla is now accepting Cybertruck trade-ins. 2 owners showed us how much their vehicles have depreciated.

Tesla is now accepting Cybertruck trade-ins, revealing significant depreciation; initial estimates from two owners show a roughly 37% to 38% depreciation within the first year of ownership, outpacing depreciation rates of comparable EVs like the Rivian R1T. While EV depreciation is generally higher than traditional vehicles, the Cybertruck's rapid value decline comes amid broader pressures on the Tesla brand, including political backlash and scaled-back production, potentially impacting resale values.

Analysis

Tesla has initiated Cybertruck trade-ins, offering an initial view into the vehicle's depreciation, which appears substantial. Data from two owners, one with an all-wheel-drive model and another with a Cyberbeast variant, indicate depreciation rates of approximately 37% to 38% within roughly a year to eight months of ownership, respectively. The all-wheel-drive model, purchased for about $100,000 (including add-ons) and driven 19,623 miles, received a trade-in estimate of $63,100, a 37% decrease. The Cyberbeast, costing around $127,000 (including tax), was valued at $78,200 after eight months, a 38% decline. These figures, while preliminary estimates subject to final confirmation, suggest a depreciation rate significantly outpacing the average new car (which Kelley Blue Book estimates at 30% over two years) and notably higher than competitor EVs like the Rivian R1T, which reportedly depreciated about 29% over two years. While Electric Vehicles (EVs) generally depreciate faster than internal combustion engine vehicles – an iSeeCars study found EVs lost 58.8% in five years compared to trucks at 40.4% – the Cybertruck's rate appears particularly steep. This rapid value erosion occurs amidst a backdrop of an EV buying slowdown, Tesla scaling back Cybertruck production targets, delivering fewer than 50,000 units despite over a million initial reservations, and broader brand pressures including political backlash affecting CEO Elon Musk. The observed depreciation, market impact score of 0.4, and negative sentiment (-0.3) for TSLA underscore potential challenges for the Cybertruck's residual value and market acceptance.

Key Decisions for Investors

• Investors should closely monitor ongoing Cybertruck trade-in values and secondary market data as more vehicles become eligible, as this will provide a clearer picture of its long-term value retention and demand.
• Consider the implications of high Cybertruck depreciation on Tesla's brand equity, customer loyalty, and its competitive positioning within the increasingly crowded electric truck segment, especially against rivals with potentially better value retention.
• Evaluate the potential impact of the Cybertruck's rapid depreciation, alongside reported production cutbacks and lower-than-expected delivery volumes against initial reservations, on Tesla's future revenue streams and profitability for this specific model line.
• Factor in the observed negative sentiment and the specific depreciation data as a potential headwind for Tesla, warranting a cautious approach to assumptions regarding the Cybertruck's contribution to overall financial performance and market share.