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Value Summary. The 2025 Tesla Model S started at about $79,990 for the AWD trim and $94,990 for Plaid, with other pricing references placing the model around $81,880: $96,880 depending on configuration and options. Current depreciation data suggests a typical Model S retains about 31%: 38% of original value after five years, which puts a five-year resale range near $28,000: $36,000 for a well-kept example. Using the midpoint of those estimates, the 2025 Model S shows roughly 62% total depreciation over five years, or an average loss near 12% per year, though the first few years fall faster than the average because EV price cuts and lease-cycle supply hit used values early.

Depreciation Curve Analysis. The curve is front-loaded: the sharpest drop usually happens in the first 1 to 3 years, then the rate slows as the car reaches a more stable used-market band. CarEdge data indicates about 37% depreciation by year 3 and about 69% by year 5 for a Model S under typical assumptions, while iSeeCars reports roughly 57.2% depreciation by year 3 and 62.1% by year 5. Recharged’s market summaries also point to a 5-year loss of about 60%: 70% of MSRP, which is consistent with the broader used-EV market for luxury sedans. A practical year-by-year estimate looks like this: year 1 around $74,000: $76,000, year 2 around $66,000: $70,000, year 3 around $55,000: $63,000, year 4 around $40,000: $50,000, and year 5 around $28,000: $36,000, depending on trim, mileage, and condition.

Comparison to Average. The Model S depreciates faster than many mainstream luxury sedans and often worse than the strongest value-retaining EVs, largely because Tesla has cut new-car prices repeatedly and because battery-driven technology changes quickly. Recent studies cited by industry coverage place the Model S at roughly 62%: 65% five-year depreciation, which is steep even within the EV segment and well above the loss seen in many traditional premium nameplates. That said, the Model S is not alone: premium EVs generally face stronger depreciation than comparable gas-powered luxury cars because buyers discount future battery wear, out-of-warranty repair risk, and rapid product refresh cycles.

Value Retention Factors. Several forces shape resale value. First, Tesla’s frequent pricing changes reset buyer expectations and compress used pricing, making older inventory harder to support at high asking prices. Second, mileage matters heavily: a low-mileage example with complete service history can command a noticeably better price than a car with average or heavy annual use, especially as warranty coverage rolls off. Third, condition is critical because wheel damage, cosmetic wear, tire replacement, and interior degradation affect buyer confidence more than they do on many gas cars. Fourth, demand remains helped by strong brand recognition, impressive performance, and the Model S’s long-range, fast-charging appeal, but that demand is offset by concerns about battery health and newer alternatives offering similar acceleration for less money.

Future Value Projections. If the 2025 Model S follows historical patterns, a 1-year value estimate lands around $73,000: $76,000, a 3-year estimate around $55,000: $63,000, and a 5-year estimate around $28,000: $36,000. For a high-quality, low-mileage car with desirable options, the upper end of each range is more realistic; for high-mileage or heavily used examples, the lower end is more likely. The best time to sell is usually before the steepest post-new decline has fully played out and before the car crosses into higher-risk, out-of-warranty territory, which for this model is often around years 2 to 4. That window balances remaining factory coverage, lower perceived battery risk, and stronger demand from buyers who want the Model S experience without paying new-car pricing.

Comparison to Competitors. Versus similar luxury EVs, the Model S has historically depreciated more harshly than many buyers expect, especially when compared with models that have slower MSRP movement and more conservative new-car pricing. If value retention is the priority, alternatives that tend to hold better include certain Porsche Taycan variants, some Tesla Model 3 trims, and higher-demand hybrid or gas luxury sedans that benefit from broader used-market familiarity and more predictable pricing. For shoppers focused on ownership cost rather than outright performance, a lower-priced EV with a stronger resale reputation can reduce the dollar loss even if the percentage depreciation remains meaningful.

Bottom Line. The 2025 Tesla Model S delivers strong performance and prestige, but depreciation remains a major ownership cost. The model’s typical five-year decline is large, early, and highly sensitive to Tesla pricing, mileage, and condition, so buyers should expect value to fall faster than the average luxury car and plan resale timing accordingly.