Tesla is gearing up to launch its highly-anticipated Model Y refresh and it is set to shake up the electric vehicle (EV) market. Demand is there, with Australians just breaking its annual EV sales record.
However, CarExpert.com.au founder Paul Maric told Yahoo Finance the hype around the Juniper update, the first major facelift since its 2019 launch, has caused sales for the Elon Musk brand Model Y to slow. This could lead to price drops on older models — a financial blow for those trying to sell in the second-hand market.
The Electric Vehicle Council said more than 100,000 EVs have been sold so far in 2024, outpacing the previous record of about 98,400 sales in 2023.
Tesla has remained the best-selling EV in Australia, despite threats from cheaper Chinese-made models like BYD.
However, Tesla hasn’t recorded year-on-year growth here since March.
Maric said people are holding out so they don’t miss new features coming as part of the update.
“That could add a bit more pressure on Tesla because they’ll want to clear some of that old stock,” he told Yahoo Finance.
Depreciation has been a major problem in the EV market as better technology and battery range advancements lead to more regular upgrades.
Maric a brand new version of the Model Y will see the old version depreciate more than usual, creating a serious problem for those on novated leases.
“If Tesla starts dropping their prices even further, you’re going to get to the end of your five-year lease annual residual, which is set at the very start of your lease based on your purchase price, and it will actually be more than what the car is worth at that time for a balloon payment,” he said.
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The Model Y was the world’s best-selling car in 2023 – the first time an electric vehicle took out the title.
BITRE data found Australians hold onto their vehicles for an average of 11 years and three months.
To avoid losing too much money to depreciation, Maric said motorists should upgrade an EV every two years.
Electric cars retained 82.8 per cent of their original value on resale if moved on within two years, according to the Australian Automotive Dealers Association (AADA) and AutoGrab and
Electric cars two years and younger retained 82.8 per cent of their original value.
