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The 2023 Tesla Model S has held value better than many luxury EVs, but it still shows meaningful depreciation from its original sticker price. KBB’s current guidance places the 2023 Model S at about $47,400 in resale value versus an original MSRP of $76,630, which implies roughly 38% depreciation over three years.

Value Summary

Current estimated value: $47,400.

Original MSRP: $76,630.

Total depreciation from new: about $29,230, or 38%.

Depreciation rate: roughly 12.7% per year on a straight-line basis, though real-world depreciation is not linear.

Edmunds’ five-year ownership data shows total depreciation of $33,365 for the 2023 Model S, while iSeeCars estimates a five-year depreciation rate of 62.1%, leaving about 37.9% of original value at that point. Those figures show that the Model S loses value quickly in the first few years, then the curve starts to flatten as the vehicle ages.

Depreciation Curve Analysis

The steepest drop usually happens early, especially as new-car pricing resets and Tesla’s frequent price adjustments pull down used-market expectations. KBB’s three-year data indicates a 38% loss from MSRP, while iSeeCars shows a 57.2% drop after three years for the broader Model S nameplate depending on configuration and assumptions.

A practical year-by-year view for a typical 2023 Model S looks like this:

• Year 0: $76,630 new.
• Year 1: about $61,500 to $65,000, depending on mileage, trim, and market conditions, based on early-decline patterns reported across resale guides.
• Year 3: about $47,400, or as low as the mid-$40,000s in weaker-condition examples.
• Year 5: roughly $36,000 to $40,000 using iSeeCars and Edmunds five-year depreciation estimates.

Compared with the broader EV market, the Model S sits somewhat worse than average on long-run depreciation. One industry comparison placed the Model S at 55.5% five-year depreciation, versus 49.1% for the nationwide EV average. That means the Model S has historically lost value faster than the average EV, even though it still benefits from premium-brand demand.

The steepest depreciation period is usually the first 24 to 36 months, when the car transitions from new MSRP to used-market pricing and absorbs Tesla’s pricing volatility. After that, depreciation tends to slow, especially for low-mileage cars in clean condition.

Value Retention Factors

The Model S holds value better than many EVs because it is still viewed as a benchmark luxury performance sedan with long range, strong charging access, and brand recognition. Demand remains solid for the Model S nameplate, but buyers are highly price-sensitive because used Tesla inventory competes directly with frequent new-car incentives and price cuts.

Mileage impact: Lower mileage meaningfully improves resale value. Recharged’s 2026 market guidance notes that mid-$40,000s to low-$60,000s is a realistic range for average-condition 2023 cars, with low-mile examples commanding more.

Condition impact: Clean interior condition, strong battery health, and complete service records matter more on EVs because buyers worry about battery wear and repair costs.

Market demand factors: Tesla price changes, EV tax credits, and competition from newer luxury EVs can reduce used Model S pricing faster than normal sedan trends.

Future Value Projections

Using current depreciation patterns from KBB, Edmunds, iSeeCars, and CarEdge, a reasonable forward outlook is:

• 1-year projected value: about $42,000 to $44,000 if the car is average mileage and condition, assuming continued mid-single-digit annual softness.
• 3-year projected value: about $34,000 to $37,000, which aligns with long-run residual-value estimates for the Model S.
• 5-year projected value: about $30,000 to $36,000, depending on trim, mileage, and battery condition.

Best time to sell: within the next 6 to 18 months is often the strongest window, because the car has already taken its biggest depreciation hit while still remaining desirable to used-EV shoppers. Waiting longer usually makes sense only if mileage stays low and market prices stabilize.

Comparison to Competitors

Against other luxury EVs, the Model S is not a depreciation leader. In segment comparisons, it has historically depreciated faster than the average EV, even though it often resells better than lesser-known electric sedans with weaker brand pull.

If value retention matters most, alternatives worth comparing include vehicles with stronger residual reputations and more stable used-market demand. In practice, buyers often cross-shop the Model S against premium EVs from Porsche, Mercedes-Benz, and Audi, but the Tesla usually wins on charging and software while losing some ground on depreciation predictability.

Bottom line: The 2023 Tesla Model S is still a high-demand luxury EV, but its depreciation curve is front-loaded and faster than the EV average over five years. Buyers who prioritize lowest ownership cost may prefer a model with slower depreciation, while shoppers who want Tesla performance and charging convenience may still find the Model S compelling at current used-market prices.