New research is raising questions about the future of electric vehicles, particularly luxury models. Studies by iSeeCars show that some premium EVs are losing value faster than expected.
The biggest culprit? The Mercedes-Benz EQS. This luxury sedan reportedly loses nearly half its value after just one year, meaning owners can see a depreciation of over $65,000 in a short time.
But the EQS isn’t alone. The Nissan Leaf also experiences significant depreciation, proving that value loss isn’t just an issue for high-end European brands. Even the Kia EV6, a strong contender in the EV market, is facing steep depreciation.
So, what’s causing this rapid loss in value? A few factors likely contribute. More automakers are entering the EV market, leading to increased competition. Additionally, battery and charging technology are evolving rapidly, making some features in today’s models seem outdated tomorrow.
Some suggest declining consumer interest in EVs, but the data tells a more complex story. Surprisingly, Tesla models are defying depreciation trends. In some cases, a used Model Y can sell for more than a brand-new one.
This pricing anomaly is likely linked to Tesla’s recent price adjustments. While used Teslas are currently seeing a price bump, they still depreciate—just at a much slower rate than other EVs.
The takeaway? Electric vehicles, especially luxury ones, may not be the solid investment some believed. However, before dismissing EVs entirely, consider the brand and do thorough research. Some models hold their value—and their charge—better than others.
