Key Takeaways
1. Tesla is implementing zero APR financing for the Model 3 and a 1.99% interest rate for the new Model Y to increase sales during a potentially slow quarter.
2. Sales in Europe have halved compared to last year, with stagnation also seen in the US and China, prompting Tesla to launch a new demo drive initiative.
3. A new 48-hour test drive format for multiple models, including the Cybertruck, has attracted significant interest, with bookings filling up weeks in advance.
4. The Cybertruck is facing high depreciation rates, losing an average of 38% of its value within the first year, which is unusual for electric vehicles.
5. Concerns about the Cybertruck’s pricing and market perception have led to its rapid decline in resale value, affecting owner sentiment.
After launching zero APR financing for the Model 3 and a 1.99% interest rate for the new Model Y, as well as reinstating free FSD transfers and extending discounts for military personnel, educators, and first responders, Tesla has come up with a creative approach to boost sales during what could be a sluggish quarter.
Sales Challenges in Europe and Beyond
In Europe specifically, Tesla’s sales have declined by half compared to last year, while sales in the US and China have also been stagnant, although the reasons differ. The possible elimination of the EV tax credit in the new budget bill might prompt buyers to act sooner, thus helping the quarter in the US. To support this, Tesla has rolled out a fresh demo drive initiative.
New 48-Hour Test Drive Format
For the first time, anyone can reserve a long 48-hour test drive with the Model Y, Model 3, Model S, Model X, and even the Cybertruck. Tesla made the announcement about the complimentary Model Y and Cybertruck trials over the Memorial Day weekend, and it appears to have resonated well, as bookings are now full for weeks ahead.
Some showrooms are noticing that many current Tesla owners are reserving multiple test drive slots to experience the new Model Y or the Cybertruck for an extended duration before making a decision on an upgrade.
Interest in the Cybertruck
The Cybertruck seems to generate significant interest, as in many regions, the 48-hour test drives have been reserved for a month in advance. It’s still unclear if these will lead to actual sales or if people are simply curious. Recently, Tesla has also introduced a more affordable RWD Cybertruck model and started accepting trade-ins for the original Foundation Series trims, which are now over a year old.
Unfortunately, the trade-in valuations Tesla offers to Cybertruck owners are not much different from what the first electric pickup is fetching in the second-hand market, which isn’t very high. According to Kelley Blue Book, the Cybertruck has seen a staggering average depreciation of 38% within the first year.
High Depreciation Rates
This figure applies to the priciest Foundation Series trim, which was priced at up to $120,000. Owners can lose over $40,000, which is about the cost of a new Model 3 AWD after the tax credit is factored in. The Cybertruck’s depreciation in just one year is significant, even by electric vehicle standards. Typically, electric cars lose around 60% of their value over the first five years, making the Cybertruck’s rate of decline unusual, especially when compared to the Rivian R1T, which depreciates only 30% in two years.
“It used to be a bit of a status symbol, but now we’re noticing it’s not seen that way,” explains an industry insider, who also suggests that the Cybertruck may have been overpriced right from the start, which could shed light on its rapid drop in resale value within just a year.
Source:
Link
Leave a Reply