The Tesla Model X and the Model S may be largely eclipsed by the disruptive force that is the Model 3 today, but the two flagship vehicles remain formidable in the market. During the 2019 China Automotive Finance and Hedging Rate Research Committee Annual Meeting, for example, the Model X and Model S were dubbed as the vehicles that preserved their value the best.
According to the committee’s data, the Model X’s one-year, two-year, and three-year hedging rates were listed at 67.46%, 57.22%, and 49.21%. On the other hand, the Model S, Tesla’s flagship sedan, was listed with one-year, two-year, and three-year hedging rates of 65.32%, 57.74%, and 50.28%. This allowed the two vehicles to top the rankings of China’s currently-available electric cars.
What’s even more impressive is that the Model X and Model S’s resale values were comparable with the best in the market, electric or otherwise. Even if the two flagship vehicles were compared with the country’s premier luxury cars, their resale values were not inferior.
Credit: Tesla China
These results bode well for Tesla, considering that the electric car maker is currently looking to expand its presence in the country with its Gigafactory 3 in Shanghai. With Gigafactory 3 in operation, Tesla would be able to saturate the local electric car market with the Model 3, a higher-volume vehicle compared to the Model S and Model X.
If the Model 3’s resale values in the United States are any indication, however, there is a good chance that the all-electric sedan would perform well in next year’s China Automotive Finance and Hedging Rate Research Committee Annual Meeting. This is because in the US auto market, the Model 3 has been preserving its value in a very impressive manner.
As noted in a Forbes report, the Model 3 keeps its value so well that it is more practical to simply buy a new one instead of purchasing a used unit. Data from Kelley Blue Book, for example, states that sellers typically ask around $47,323 for a 2018 Model 3 with average miles and in good condition. In Carfax.com, several Model 3 were listed for between around $40,000 to $50,000. These prices are quite interesting, considering that a Standard Range Plus Model 3 could be purchased new for $39,990 before options and incentives.
Tesla has prided itself for releasing vehicles that buck the trend. If the Model X and Model S' recent awards from China are any indication, it appears that the company's vehicles are a league of their own even when it comes to their own resale values.
Featured Image Credit: Tesla China
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Longtime writer and news/book editor. Writing about Tesla allows me to contribute something good to the world, while doing something I love.