All articles tagged with #ev depreciation
US EV registrations fell in 2025 for the first time in ten years, according to S&P Global. The decline followed the end of federal EV incentives (including the $7,500 tax credit), with a sharp 48% drop in December after a Q3 rush. Beyond incentives, higher EV prices, range anxiety, and faster depreciation—especially in high-end models like the Porsche Taycan—weighed on demand.
The faster depreciation of EVs compared to gas cars is largely due to rapid technological advancements making older models less desirable, coupled with market factors like subsidies and high initial prices. While EVs lose value quickly, this trend may reflect ongoing innovation rather than lack of demand, and improvements in battery technology and new models suggest the depreciation rate could stabilize over time.
The resale value of electric vehicles is rapidly declining worldwide, especially impacting fleet operators and private owners, due to uncertainties about battery lifespan and market valuation, with Tesla retaining value better than Chinese brands, and regional differences affecting resale prices. Emerging battery-as-a-service models and improved battery data are seen as potential solutions to stabilize the market.