I Just Bought My First Tesla Cybertruck, and Now, I Was Welcomed Into the Upside Down Financial Club

If you buy a Tesla Cybertruck or another Tesla model, are you at financial risk for being upside down on your loan? 

You could be, and some Tesla owners are not happy with their current situation. Here is what Tesla owners need to know. 

Andrell Harris recently purchased a 2025 Tesla Cybertruck and is happy, at least for now. His girlfriend also recently purchased a Tesla Model Y, and they are wondering if they should have waited. 

I can hear Andrell saying, “I just bought my first Tesla Cybertruck, and now, I was welcomed into the Upside Down Financial Club.”

One comment on the Tesla Cybertruck Owner's Facebook page says they could be in for a bumpy ride, at least financially. 

Mitch Caldwell says, "Welcome to the vehicle upside-down financial club. I'm $40,000 upside down. It's a great automobile, but Musk kept reducing the prices on Model Ys, leaving us folks in the red."

What is the current situation for Tesla owners who finance their cars and trucks?

A report from Edmunds says that approximately one in four Tesla owners who traded in their vehicles for a new purchase in the latter half of 2024 were "upside down" on their loans, meaning they owed more than the car was worth. 

This situation is particularly concerning for many EV owners, as they tend to owe significantly more than owners of gasoline-powered vehicles. 

It's challenging to determine the exact number of Tesla Cybertruck owners who are upside down on their loans. However, it's a growing concern for many Tesla owners, including those who have purchased Cybertrucks. Factors such as rapid depreciation and high initial costs make this a situation that demands attention. 

Are Tesla vehicles depreciating faster than other cars?

According to FindMyElectric, used Tesla vehicles generally experience a faster rate of depreciation compared to other car brands, including other electric vehicles. While some data suggest that depreciation is more pronounced in the first year or two of ownership and stabilizes later, overall, Teslas are losing value more quickly than many other vehicles. 

The report says, "One of the most significant factors contributing to Tesla depreciation is the company's frequent and unpredictable price adjustments."

"Tesla's history of altering the pricing of its vehicles, often without much notice, can have a significant impact. While it may make Tesla vehicles more accessible to new buyers, it can also lead to a sudden drop in the resale value of Teslas purchased at a higher price point."

This is a factor that every Tesla owner should take into consideration.

CBT News says according to new data from CarGurus, Tesla's used car prices are falling at a rate nearly three times faster than the rest of the used car market. 

"The data shows that over the last three months, used Tesla vehicles have experienced an average price drop of 3.7%, compared to just 1.12% for the broader market. Year over year, Tesla's prices have decreased by 7.26%, while the overall used car market has declined by 2.68%," the report says.

• Model 3: Down 4.19% in the last three months, 11.52% year over year
• Model Y: Down 2.9% in the last three months, 13.56% year over year
• Model S: Down 8.32% in the last three months, 6.33% year over year
• Cybertruck: Down 11.46% in the last three months, 58.28% year over year

What's Happening with the Tesla Cybertruck?

The Tesla Cybertruck is experiencing a higher-than-average depreciation rate, meaning its value decreases significantly shortly after purchase. While the initial cost is substantial, reports indicate a rapid decline in resale value, with some owners experiencing losses of 35% or more within a year. This depreciation is influenced by factors such as the evolving electric vehicle (EV) market, new technologies, and Tesla's over-the-air updates. 

CBT News reports that  Cybertruck's steep decline is partly due to early flippers attempting to resell for a profit; however, the 11.5% drop in the past three months suggests cooling demand for the vehicle.

Here's a more detailed breakdown:

• High Initial Cost: The Cybertruck's price, even after delays and adjustments, is higher than initially projected.
• Rapid Depreciation: Reports indicate that Cybertrucks are depreciating at a faster rate than many other vehicles, particularly in the first few years of ownership. 

Factors Affecting Depreciation:

• Evolving EV Market: The rapid pace of innovation in the electric vehicle market can make older models, including the Cybertruck, less desirable as new technologies emerge.
• Tesla's Over-the-Air Updates: While beneficial for improving functionality, these updates can also contribute to faster depreciation as newer models with updated features become available. 

Examples of Depreciation:

CarEdge reports that a 1-year-old Cybertruck with 6,200 miles saw a 34.6% drop in value. Tech in Asia reports show trade-in quotes for Cybertrucks with significant mileage drops of 37% and 38%. 

Conclusion:

A significant percentage of new EV buyers are currently upside down on their loans, with an average negative equity of over $10,000. This trend is also affecting Cybertruck owners, according to Carscoops, who are experiencing similar challenges. 

While there are no specific data on Cybertruck owners alone, the general trend of EVs experiencing high depreciation and negative equity suggests that a considerable number of Cybertruck owners are likely in this situation. 

How About You?

Do you own a Tesla Cybertruck or another Tesla model? Have you experienced a rapid drop in value, resulting in negative equity? If so, click the red Add New Comment link below and let us know.

Check out my Tesla Cybertruck story: My Tesla Cybertruck Just Drove Itself Back To the Dealer Because of the Heavy Debt I Owe, Come Back Cybertruck

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl via Andrell Harris