The Tesla Model 3 loses value faster than any other electric vehicle on the market, depreciating by 12.9 percent annually since 2020, according to a February 2026 study by business to business (B2B) car company eCarsTrade analyzing six years of pricing data across popular electric models.
The study examined what buyers paid for popular electric vehicles in 2020 and compared those prices to current 2026 resale values, revealing that the Model 3 dropped from 69,740 euros in 2020 to an average of 15,787 euros in 2026. This represents a total loss of 53,953 euros, leaving the vehicle retaining just 23 percent of its original price.
The Audi e-tron followed closely with a 12.8 percent annual depreciation rate. The luxury sport utility vehicle (SUV) launched at approximately 78,604 euros in 2020 but now sells for about 18,130 euros on average, a drop of more than 60,000 euros that puts current value at roughly 23 percent of original price.
The Jaguar I-PACE took third position with a 12.3 percent annual depreciation rate. The British luxury crossover cost nearly 79,273 euros new but now averages just 20,550 euros in resale value, leaving buyers with roughly 26 percent of what they originally paid.
Budget friendly electric vehicles depreciated at comparable rates to luxury models. The Chevrolet Bolt EV, which sold for just under 40,000 euros in 2020, landed in fourth position with 12.3 percent annual value loss. Six years later, the vehicle averages 10,369 euros, retaining just 26 percent of its purchase price.
The Nissan Leaf rounded out the top five with an 11.7 percent annual depreciation rate. Originally priced at 39,635 euros, the vehicle now sells for approximately 11,810 euros, representing a loss of nearly 28,000 euros and retaining 30 percent of its original worth.
Other models experiencing significant depreciation include the Kia Niro EV at 11.2 percent annually, Tesla Model Y at 11.0 percent, DS 3 Crossback E-Tense at 10.9 percent, Renault ZOE at 10.7 percent, and Hyundai IONIQ Electric at 10.6 percent.
An auto expert from eCarsTrade said one reason electric vehicles depreciate rapidly is heavy purchase incentivization. Most new buyers receive discounted prices through government incentives encouraging eco friendly cars, and resale buyers naturally account for these original discounts when determining prices they will pay.
The expert also cited rapidly advancing battery technology. Battery range keeps increasing, reducing demand for older models that cannot travel as far as newer versions. The maximum available electric vehicle range has more than doubled in the last decade, while median range has tripled, according to the United States Department of Energy.
Electric vehicles now account for 10 percent of all vehicle sales in America, according to Motor Intelligence data covering the first nine months of 2025. Battery electric vehicles (BEV) made up 15 percent of all new car sales in January 2025 across Europe, up from 10.9 percent in January 2024.
An iSeeCars analysis examining over 800,000 vehicle sales between March 2024 and February 2025 found that electric vehicles lose 49.1 percent of their value within five years on average, which is 13 percent more than the overall market average for all fuel types.
Industry analysts note that faster depreciation creates opportunities for used car buyers who could not afford new electric vehicles. Lower prices increase demand in the second hand market, making electric mobility more accessible to price conscious consumers.
Florida based car rental company Hertz, which purchased 100,000 Teslas in 2021, reported a 2.9 billion dollar loss in 2024 driven largely by plummeting electric vehicle values, according to its February 2025 earnings call. The company was losing more than 530 dollars per car monthly by late 2024 due to high upfront costs, steep insurance premiums, and long repair lead times.
Hertz subsequently sold 30,000 electric vehicles, with Teslas originally bought for more than 40,000 dollars appearing on its website for resale at prices under 20,000 dollars. The experience illustrates how fleet operators feel residual value risk most acutely because they model total cost of ownership precisely and must remarket thousands of units.
Despite steep depreciation rates, automotive experts note that electric vehicle resale values are becoming more stable as battery life improves, charging networks expand, and second hand demand increases. The gap between electric and traditionally fueled vehicle depreciation is narrowing compared with earlier years when electric vehicles lost value even more rapidly.
Mainstream electric vehicle models from manufacturers like Tesla and Volkswagen are holding value better in the used market than luxury electric vehicles and early generation models, which tend to lose value fastest.
