How Much Value A 2021 Tesla Model 3 Lost In 5 Years

The Tesla Model 3 first hit the market in 2017, and quickly began dominating the electric vehicle (EV) industry. In fact, the Model 3 remains in production in 2026, with its base trim serving as the most affordable Tesla you can buy new, as of April 2026. While the EV has received plenty of praise over the years — its resale value might leave something to be desired.

CarEdge reports that Model 3s depreciate at a rate of 61% over five years and have a 5-year resale value of $20,136. However, depending on the specific trim level these figures could change. For instance, a base-model 2021 Tesla Model 3 — which sold new for $39,190 — would be worth roughly $15,284 in 2026. Meanwhile, a more premium Model 3 Performance – which was listed for $56,190 that same year — would have a resale value of roughly $21,914 in 2026. 

Kelley Blue Book's (KBB) projections are kinder. Based on current prices for used 2021 Model 3s, KBB estimates prices between $21,000 to $26,000, depending on trim level and condition. That would be a depreciation rate of 46.1% over five years for the Standard Range Plus Model 3, or 52.7% for the Performance trim. While these figures are still lower than the 69% depreciation rate that CarEdge predicts will drain from the more luxurious Tesla Model S — one of the worst cars for retirees – 2021 Model 3 owners will still be hard pressed to get back even half of the initial purchase price.

Buying an EV doesn't always save you money, and older Tesla Model 3s come with a number of potential liabilities that could impact resale value. While Tesla batteries are designed to last for many years, they're often cited as one of the central reasons Tesla cars lose value so quickly. This issue can be especially prominent in older models, with even higher-end Model 3 batteries only under warranty for a maximum of eight years or 120,000 miles. Plus, Tesla's warranty suggests that it wouldn't be entirely abnormal for the battery capacity of the vehicle to have dropped by 30% by the time it reaches those thresholds. The inconvenience of frequently needing to stop and charge the vehicle could potentially outweigh what a used Model 3 driver saves in gas. Also, Model 3s aren't exactly lauded for their build quality in general, so the clock's ticking for vehicles that have already aged five years or more.

Additionally, in the years since the 2021 Model 3 was on the conveyer belt, Tesla CEO Elon Musk has been the subject of several public controversies. Many Tesla owners have since sold their cars in response to his behavior, saturating the resale market — and further fueling the stigma that some owners perceive now comes with Tesla ownership.