Moreover, Audi is considering adding a new "entry-level" electric vehicle along with significant budget reductions. Additionally, Carlos Ghosn suggests that Elon Musk might have solutions for improving Nissan’s situation.

In 2019, Elon Musk claimed that Teslas were a "valuable investment" that would increase in worth. However, now that the company’s stocks and the resale prices of used vehicles have plummeted dramatically, many owners are hurriedly selling their cars to avoid further depreciation as the brand continues to decline.

Welcome back to Critical Materials Here’s your daily digest of everything electric and tech-related in the automotive industry.

Today, I'm trying not to watch the value of my Tesla depreciate in real-time, Audi looks at the future, and disgraced former Nissan executive Carlos Ghosn says his "friend" Elon Musk could fix the Japanese automaker—kind of. Let's jump in.

30%: Tesla's Valuation Is Declining Three Times More Rapidly Than Any Other Brand

Do you recall what happened last week when we cautioned you about the falling values of Tesla stocks Well, the carnage isn’t finished just yet, and those who own Teslas – whether due to the negative perception of the company’s leader or because they fear the car values might plummet as dramatically as the Titanic did – are selling their vehicles at quite an unsettling pace.

A new look at the value of used Teslas by buying website CarGurus (and cited by Electrek ) indicates that the entire lineup is experiencing significant devaluation. When we say significant, we mean much more than just a slight increase in percentage points.

Second-hand Tesla vehicles are losing value three times faster compared to those from other car manufacturers. According to the statistics, pre-owned Teslas have dropped in value by an average of 7.26% each year, indicating considerably higher depreciation rates than the industry average. CarGurus ' used vehicle index.

At the heart of the decline is the Tesla Cybertruck, which has experienced an impressive -58% decrease compared to the previous year. This substantial reduction can largely be attributed to a sharp downturn in demand for the vehicle over recent months, along with temporary price hikes in the 2024 reseller market. However, the Cybertruck isn’t alone; models including the Model 3, Model Y, Model S, and Model X also show considerable declines since last year, with decreases ranging between -6.3% and -13.6%. A review of the past three months similarly indicates a consistent downtrend across these vehicles.

Why did the value drop so significantly? Is it because of a surge in pre-owned Teslas being sold? Or perhaps people simply prefer different options now? new Given the intense competition in the electric vehicle market like never before. On the other hand, maybe the exhaustion with Elon Musk is genuine, and people aren’t simply moving away from his brands because they dislike them, but for other reasons. steering clear of purchasing used Teslas to dodge the brand's history and issues .

A brief visit to Reddit reveals just how delighted people are. previous Tesla owners are to have unloaded their cars. Whether it be for a Rivian , Chevy Equinox EV , Kia EV6 GT , or numerous other instances—owners are delighted to have moved away from Tesla's influence. Almost every post cites Tesla's CEO as at least one reason for leaving, with some owners even trading in their vehicles. multiple vehicles to make sure they had a EV-focused (yet Tesla-less) stability .

Although Reddit may act as an echo chamber at times, it demonstrates that actual individuals are making efforts to exchange their vehicles for options other than a Tesla. This indicates that the demand for electric vehicles from brands other than Tesla is probably increasing. what we have observed recently in the automotive industry for new cars over the past twelve months This is not surprising considering the increased competition within the new electric vehicle market. Additionally, this supports Electrek’s observations, indicating that a continuous supply of pre-owned Teslas being traded for non-Tesla electric vehicles might be contributing to lower values for these used Tesla models.

For present Tesla owners, decreasing prices ought to serve as a cautionary signal. Should declining residual values not have been an issue previously, they're increasingly becoming one now. High resale values used to be a significant advantage for Tesla’s brand. In fact, Musk once boasted that Tesla vehicles would turn into “ appreciating asset ." Instead, the brand continues to devalue—partly because That's simply how cars operate. but also because the company’s CEO appears to be eroding the appeal that their vehicles previously possessed.

Excited about some positive developments? If political affairs aren’t of interest to you and you couldn't be less concerned with Musk’s activities, this could be your moment to excel. As pre-owned Teslas become more affordable than ever before, acquiring one has never been such a great deal.

Seriously, the cost of a pre-owned Tesla is nearly equivalent to the mean price of all used cars listed. CarGurus —$29,552 for Tesla compared to $27,014 for all brands. This indicates that purchasing a new electric vehicle is currently very budget-friendly, provided you don’t mind sporting a Tesla emblem.

60%: Audi Weighs Cuts, 'Entry-Level' Electric Model

Currently, the Volkswagen Group is experiencing some challenges. There has been a significant drop in sales within China and stagnation in European markets, coupled with substantial expenses related to electrification and advanced technologies. Additionally, they have not made considerable strides in the North American market. Among all brands under the Volkswagen umbrella, Audi seems to be bearing the heaviest burden due to these issues. had to shut down a manufacturing plant last year —a situation the corporation steers clear of at all costs.

Now, the reductions are being implemented, per Reuters Audi’s leadership and workforce in Europe have concurred on reducing approximately 7,500 positions in Germany by 2029, primarily within administrative roles with some impact on developmental teams.

However, there is also positive news here, particularly for Audi enthusiasts looking to embrace electrification without investing in the higher-priced options like the Q6 or A6 E-Tron models.

The luxury automaker intends to introduce a new budget-friendly electric vehicle at its facility in Ingolstadt. Additionally, they are mulling over producing another model at their second location within Germany, which is situated in Neckarsulm. This move serves as a reassuring gesture for German labor representatives who were previously concerned about auto manufacturers choosing to manufacture electric vehicles in more cost-effective nations.

Hopefully, this will turn out superior to the Q4 E-Tron.

90%: Carlos Ghosn Says His 'Friend' Elon Musk Can Fix Nissan

Former Nissan-Renault megaboss Carlos Ghosn is not a fan of what's happened to Nissan since he left— although "left" may be somewhat understating the precise details of his departure The former CEO who turned fugitive internationally has once more criticized Nissan’s leadership, stating that the company’s deficiency in foresight and decision-making has undermined all the effort invested by Ghosn during his sixteen-year tenure as CEO at Nissan.

Never worry, as Ghosn has a plan to address this. Nissan's death spiral And, no, it's not to replace the CEO again— Nissan has already accomplished this. According to Ghosn's recent interview with Le Figaro, he stated that Shukan Post (as reported by Japan Today The only individual capable of resolving issues at Nissan is none other than Elon Musk, whom Ghosn has famously called his “friend,” and who also serves as another CEO.

From that story:

What might he do? He references someone whose name echoes far beyond its mere three syllables: "My acquaintance Elon Musk."

Everyone recognizes how remarkable Musk’s career has been—perhaps only Donald Trump could rival him among entrepreneurs. Currently, Musk holds the title of the wealthiest person globally, whereas Trump wields unparalleled power as the U.S. President. In their respective roles, Trump serves as the ultimate decision-maker, while Musk takes charge as both the chief cost-cutter and enforcer. Regardless of whether Ghosn would have proven beneficial for Nissan over time had he taken on Musk’s role, one thing remains clear: numerous Nissan staff members likely feel relieved knowing Ghosn isn’t stepping into such a position within their ranks.

Ghosn has long showed admiration for Musk's leadership Nevertheless, they both have a sort of metaphysical connection as key drivers of the initial electric vehicle revolution; Ghosn with the Nissan Leaf and Musk with, you guessed it, Tesla. Actually, Musk has been spending much of his last decade criticizing traditional car manufacturers, frequently ridiculing their sluggish decisions and obsolete approaches. To tell the truth, this is precisely where Nissan finds itself struggling nowadays.

Nissan’s sluggish bureaucratic processes stand in stark contrast to Tesla's rapid innovation strategy, often summarized as "move fast and break things." This isn’t inherently negative; nonetheless, Nissan would benefit from accelerating its operations. The company faces challenges with an outdated product range, diminished appeal in terms of value for money, and what was once a pioneering stance on electric vehicles has become somewhat stale. Pretty much just the Ariya at this moment. .

The brand requires guidance to navigate through the storm. It’s only right to say that appointing Ivan Espinosa, who calls himself a “ car guy ", which aims to achieve. Maybe Espinosa can serve as a link between the sort of disorder Musk navigates and Nissan’s present downward spiral. If this is true, it will likely be well-received by the brand's investors.

100%: What Is Expected of Tesla Owners?

It’s clear-cut: the firm's reputation isn’t looking too good at present. However, not everybody has the luxury to resell a vehicle they’re still financing or one from which they’d incur significant losses. Additionally, despite Musk's behavior, many Tesla owners probably still love their electric vehicles and aren't ready to let go of them just yet.

Are you experiencing something similar? Have you come across someone else dealing with this? Additionally, what would be your recommendation for handling this scenario? Share your thoughts below.

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