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Imagine spending $151,000 on the ultimate performance sedan, a Tesla Model S Plaid, only to watch $100,000 evaporate in less than five years. This staggering loss represents a $2,000 monthly "ownership tax" that has left even seasoned professionals questioning the sanity of buying new electric vehicles.
The $100,000 Reality Check
Alex at EV Auto (@evautoalex), an EV dealer, took it in the shorts with his Tesla Model S Plaid purchase. He gives good advice for EV buyers in 2026. He warns buyers in this Facebook reel, and says:
“This is the most depreciating car I have ever owned. This Tesla Model S Plaid, white on white, FSD, with 21-inch Arachnid wheels, has every upgrade on it you can get.”
“It was one of the very first Plaids, at least here in Utah. So, I paid top dollar for it. You may recognize it used to be pink. We peeled the pink off, and we’re gonna do something really cool with it. It’s gonna be kind of a matte green with gold metallic EV Auto writing.”
“But this car, we paid $151,000 for it. I think right now, because it’s got high miles, it’s probably worth only $50,000 or maybe $45,000. So, over $100,000 in depreciation in not quite five years.”
“That’s $25,000 per year that it’s depreciated, or $2,000 per month. So here’s the deal, though. We are going to drive it until the wheels fall off of it, until it won’t drive anymore.”
“So, people who are in this same boat, you have two choices. One, you can do what we are going to do. You can drive it forever. Two, your car will never be worth more than it is today.”
“If you are going to bite the bullet now, get rid of that sucker. And honestly, anyone who is still buying new EVs is going to get hammered, man. I know I’m biased because I sell used, but that’s the way to go.”
“Buying used EVs, you get the benefit from that. So, let the original owner take the hit on all that depreciation. You can benefit from that and buy a Model S Plaid or something like it and save yourself $100,000.”
The Brutal Truth About Tesla Model S Plaid Depreciation
As a senior reporter for Torque News with 30 years in the automotive industry, I have seen every market shift imaginable. From the SUV boom of the 90s to the current electric revolution, one rule remains constant: the higher the entry price, the harder the fall. However, what we are seeing with Tesla Model S Plaid resale values is not just a standard luxury-car decline; it is a financial bloodbath.
When Alex from EV Auto describes losing $100,000 on a single vehicle, he is highlighting a systemic issue in the 2026 electric vehicle market. Tesla’s aggressive price cuts on new models have effectively nuked the equity of early adopters. If you bought a Plaid at its peak, you didn't just buy a car; you funded Tesla’s market share expansion at your own expense.
I recently explored how these market dynamics are forcing buyers to reconsider their brand loyalty. In my report, Tesla Model 3 Owner Says, “At First, I Hated Tesla, Until I Drove This MP3, Then It Was Game Over,” I examine how the driving experience often clashes with the financial reality of ownership.
Why New EV Buyers Are "Getting Hammered"
The math is simple but painful. A high-mileage Tesla Model S Plaid hitting the market at $45,000 means the original owner paid roughly $1.50 in depreciation per mile driven. That is before you factor in electricity, tires (which the Plaid eats for breakfast), and insurance.
The best used EV deals in 2026 are found exactly where Alex suggests: by letting someone else take the six-figure hit. By purchasing a three-year-old Plaid, you are getting 1,020 horsepower for the price of a new base Model 3. This shift is why I often warn my readers about the hidden costs of being first. Whether it's a specialized EV or a traditional workhorse, the "new car smell" carries a heavy premium. I discussed similar frustrations regarding dealer pricing and unexpected costs in the 2026 Toyota Prius Owner Wants an Actual Spare Tire For His New Nightshade - He Adds, “I Can't Believe the Dealer Wants Another $900,” which shows that even affordable models have their financial pitfalls.
Advice If You Are Buying in 2026
If you are currently holding a high-depreciation EV, you have to decide if you are a "driver" or a "trader." If you love the car, follow Alex’s lead: drive it until the wheels fall off. At $50,000, the utility you get from the car far outweighs the meager cash you would get back in a trade-in.
For those looking to enter the market, the Tesla Model S Plaid price trends suggest that the "floor" is finally settling. You can now find incredible performance values without the $150,000 liability. My years in the industry have taught me that luxury is a commodity, but value is a strategy.
Even when dealing with high-end machinery, the basics of warranty and reliability still apply. For example, I recently covered how hidden warranties can save a fortune in “My 2017 Highlander Had the Infamous Grinding, Whining, Slipping Transmission: Luckily It Qualified for Toyota's ZJC Warranty,” proving that smart ownership is about knowing when the manufacturer owes you, not the other way around.
Key Takeaways
- The "Plaid Trap": Early adopters of high-end Teslas have seen over 65% depreciation in under five years.
- Buy Used, Not New: The secondary market offers the same technology and performance for $100,000 less than the original MSRP.
- The $2,000 Rule: If your monthly depreciation exceeds your mortgage, it is time to stop viewing the car as an asset and start viewing it as a long-term tool.
- Market Stabilization: As new prices stabilize, the extreme depreciation "cliffs" seen in 2024 and 2025 are likely to level off for used buyers.
What Tesla Model S Plaid Owners Are Saying
The sentiment across the web echoes Alex’s frustration, with many owners feeling "underwater" on their performance EVs.
"Rip to everyone who bought a plaid Model S for 135k, including myself. My 2021 Model S Plaid, if traded in with Tesla, would be worth 60k. Wish their trade-in program wasn't terrible. Anyone else in a giant Model S Plaid hole?" Reddit User Morbidz28
"I paid $155,000 for my S Plaid a year ago, and now they are selling for $86,000. What can I do? Depreciation is like 70% in one year. But at least I didn't have to pay a dealer markup." Reddit User 1l1l1l1
"The tale is as old as time: buy a Tesla, get a free side of massive depreciation. My Model S Plaid went from $140,940 to just $46,600 in two years after just 37,000 miles." Reddit Discussion on InsideEVs Report
Conclusion
The era of the "appreciating" Tesla is officially over. While the Model S Plaid remains a technological marvel and a speed king, it has proven to be a financial disaster for those who bought new. The smart money for 2026 is moving toward the used market, where the original owners have already paid the "innovation tax," leaving the performance for the second owner to enjoy at a fraction of the cost.
How About You?
Have you seen your EV’s value plummet faster than expected, or are you waiting for the used market to drop even further before you jump in? Click the red link below to write your comment and join the community in sharing experiences.
Next Up: Think Tesla is the only brand facing questions about reliability and resale? Check out why some owners are ditching their luxury trucks in “I'm Done With My Baby Duramax”: 2022 GMC Sierra AT4 Owner Says He's Switching to a 2025 Ford F-150.
With over 30 years of industry experience, Denis Flierl brings an insider’s perspective to Torque News, where he has been a Senior Reporter since 2012. Before picking up the pen, Denis consulted for the automotive industry's biggest brands and honed his skills as a test driver. He cuts through the noise to deliver the latest auto news, compelling owner stories, and the expert analysis necessary to navigate today's changing automotive market.
Have a tip or question? Follow me on X @DenisFlierl and @WorldsCoolestRides, or connect with me on Facebook, Instagram, and LinkedIn.
Photo credit: Denis Flierl via EV Auto
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