Tesla Vehicles - Going From Depreciating Assets To Appreciating Assets and Money Printing Machines
Tesla vehicles and, in particular, used Tesla vehicles, have come down in price significantly over the last year and a half. This could be due to rising interest rates, but regardless of the reasons, it's never been a better time to buy a used or new Tesla today at a great price.
A used Tesla also may qualify for a $4,000 used EV tax credit. You can buy a used Model 3 for $25,000 and get it for $21,000 total. That is significantly less than the average price of a new vehicle in the U.S., which is around $47,000 and less than the average price of a used car, which is around $27,200, according to LiveNowFox.
If you bought a Tesla before the prices came down, you may be in luck as Tesla has been making significant strides in its FSD software, which many people hope will one day allow Tesla vehicles to drive themselves.
One Tesla analyst sees Tesla vehicles significantly increasing in value and turning into money printing machines at the point Tesla vehicles can be driverless and offer ride-sharing and pay their owners to lend out their Tesla's in an Uber-like fashion.
No, GM Cannot and Will Not "Absolutely" Catch Tesla in U.S. Sales of EVs By 2025 - It Won't Even Be Close As Mary Barra Said They Would In 2021https://t.co/EVVAt89VH3$TSLA @Tesla @torquenewsauto #evs #sales #gm #marketleader
— Jeremy Noel Johnson (@AGuyOnlineHere) March 22, 2024
Cern Basher and Alex are two Tesla analysts who have some things to say about this.
First off, Alex had this to say:
Regardless of how conservatively you calculate the value Tesla adds as a company with a Robotaxi service you end up with massive value.
With a low Robotaxi utilization rate of just 30%, and 10 million Robotaxis in the fleet, and a P/E of 30 Tesla would add $3 Trillion to its market value.
Put in the numbers you consider as realistic and realize that today's $tsla stock price is incredibly undervalued.
Cern Basher also has this to say in a short video clip from Herbert Ong:
What happens to your Tesla whether you have FSD enabled or not. Whether you paid for FSD or not.
The concept here is that all of our cars are depreciating machines. The left side of the image. With FSD at some point, whether it's with version 12, 13, 14, or 15, whenever it is, it will turn your depreciating machine into a money printing machine.
The vehicles can make you 10, 20, or 30 thousand dollars per year. It's a money printer. It's no longer what you think a vehicle is. It still looks the same, but it's a money printing machine.
What happens to the value of your car, even if you have no intention of putting your car in a robotaxi network and not wanting people in your car trashing it?
What's going to happen is a fleet operator is going to come knocking on your door and they're going to say, I want to buy your car from you.
The price, I think, will be significantly higher than what you originally paid for your Tesla. Even me, where I paid around $50,000 for my Tesla Model 3 RWD from 2022, would probably get a comparable or even slightly higher offer for my car as a purchase from a fleet operator because they would make their money back in a couple of years and then, it's pure profit after that.
You May Also Like: Watch This Tesla Park Itself Using The New Auto Park Feature
Rising Tesla Vehicle Values
It's quite possible that Elon Musk's prediction that we would see the most significant asset value price increase in history come to used and new Tesla vehicles once Tesla's FSD is proven to be able to function autonomously.
Anyone who owns a Tesla will be able to make between $10,000 to $30,000 per year, according to most analysts who gauge what it would be after expenses. That's significant extra income, and what provides that income becomes incredibly valuable.
Elon Musk Just Said, "Three Significant Improvements to FSD Will Roll Out Roughly Every Two Weeks. Should Be Really Shining Bright By Late April Or Early May"https://t.co/hlaCZlCndu$TSLA @Tesla @torquenewsauto #fsd #evs #autonomy #robotaxi #software
— Jeremy Noel Johnson (@AGuyOnlineHere) March 19, 2024
The biggest question about this is when will Tesla vehicles become autonomous. If you believe it will be soon - within a year or two, you'd most likely be buying up all the used Tesla vehicles that you can find.
If you believe it's further out, you might wait for the compact car to release. However, by the time the compact car releases, Tesla may have solved autonomy and decide not to sell this car to anyone and run it as a robotaxi in its own fleet.
Then the existing set of Tesla vehicles become extraordinarily valuable - a very rare item that can drive around by themselves.
It's going to be very interesting to see how all this plays out!
For Further Reading: Tesla FSD Enthusiasm Is At An All-Time High - And It Couldn't Have Come At A Better Time: Just As Phase 1 Of Growth In EVs Slows Down
Do you think Tesla's are going to become appreciating assets and money printing machines?
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Regardless of how conservatively you calculate the value Tesla adds as a company with a Robotaxi service you end up with massive value.
With a low Robotaxi utilization rate of just 30%, and 10 million Robotaxis in the fleet, and a P/E of 30 Tesla would add $3 Trillion to its… https://t.co/uiIi13LU53 pic.twitter.com/pNChxW1MiW
— Alex (@alex_avoigt) March 24, 2024
Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.
Image Credit: Herbert Ong/Alex | LiveNowFox