Here's How Much A 2021 Tesla Model S Has Depreciated In Just 5 Years

It's no secret that a new car loses most of its value in the first few years, but you may not have known that electric vehicles depreciate at a faster rate than their gas-powered counterparts. And to show just how bad this is, let's take a look at one of the most popular EVs, the Tesla Model S. Although Tesla has discontinued the Model S and X, the 2021 Tesla Model S turns five this year, which is an important milestone when it comes to vehicle depreciation. 

At launch, a 2021 Model S had an MSRP of $70,620 for the base Long Range Plus trim, $91,100 for Long Range, $93,100 for Performance, and $141,190 for the high-end Plaid trim, according to data from Kelly Blue Book (KBB). This KBB data reveals that the EV is now selling in the used car market starting as low as $35,200 for the entry-level trim, having lost around 50% of its value. That might sound like a lot, but it's actually better than five-year depreciation numbers for the 2021 Tesla Model X and 2021 Tesla Model Y, which have lost about 55% and 60%, respectively. If you've been considering selling your 2021 Model S or buying one used, you'll certainly be interested in knowing how much these cars, and the various trim levels, are worth today.

According to KBB, the fair market value for a 2021 Tesla Model S is $35,200 in 2026, but, as always, that depends on the condition of the car. This price is for the entry-level Long Range Plus, and this trim has depreciated the least when compared to other higher-end options. Crunching the numbers for the entire range of 2021 Tesla Model S models shows that this EV has actually depreciated by about $59,278 from its average MSRP of $99,003, which represents a 60% fall from its original MSRP in five years. 

The higher trims of the Model S, including the Long Range, Performance, and Plaid, are selling at a national average price of about $36,700, $36,400, and $50,600, respectively. In terms of how much values have dropped in the five years, the Long Range has lost 60% of its value, the Performance is worth 61% less than it did when new, and the Model S Plaid has depreciated the most having lost 64% of its original value. The depreciation figures of the 2021 Model S certainly make sense when you consider the car's low reliability compared to models from the same year, according to Consumer Reports, and the fact that it has been recalled 24 times so far by the NHTSA, as of May 2026.

With the Model S losing up to 62% of its resale value in the first five years, you might be wondering how it stacks up against other models in its class and the general car industry. According to iSeeCars, the Tesla Model S depreciates faster than the broader large luxury electric car category. The Model S loses 57.2% of its value in the first three years, while the category only depreciates by 50%. Even after five years, the Model S still loses most of its value, dropping by 62.1% compared to 59.5% for all large luxury electric cars. 

However, that depreciation rate should smooth out as time goes by, eventually matching its segment. Compared to other cars and sedans, the Model S loses value faster and appears not to be a good choice if you want a car that can hold its value for a long time. However, that may change in the future as iSeeCars reports a bump in used Tesla prices per its recent EV market analysis.