AYESHA RASCOE, HOST:
Some good and bad news for Tesla Cybertruck owners. For a year after its launch, Tesla discouraged owners from reselling their trucks by threatening lawsuits and blacklists, and Tesla wasn't accepting trade-ins. So, the good news - you're finally able to trade in your Cybertruck for another Tesla. The bad news - Tesla seems no more eager than other buyers to pay premiums for what was one of the most ballyhooed new models in recent memory. And in fact, the Cybertruck depreciates at a much higher rate than other passenger vehicles. Ana Altchek is a trending business and tech reporter at Business Insider, and she joins us now. Welcome to the program.
ANA ALTCHEK: Thanks for having me.
RASCOE: You found that a Cybertruck depreciates 37- to 38% in value after just a year. Now, how does that compare to other cars?
ALTCHEK: In the realm of cars in general, Kelley Blue Book estimates that new cars depreciate at about 30% on average over the first two years, and they lose an added 8% to 12% each year after that. EVs, on average, tend to depreciate at a higher rate. So one study recently found that EVs depreciate at around 58.8% on average within a five-year period. Kelley Blue Book estimated that Rivian's R1T depreciated at about 29% the last two years. So there does seem to be a steeper rate with the Cybertruck compared to other similar models.
RASCOE: OK. The Cybertruck - it's unconventional looking. I mean, my kids, when we're out, they'll be, like, hey, what's this? It's a Cybertruck. And obviously, the CEO of Tesla, Elon Musk, has become a very polarizing social and political figure. Is this more about Elon Musk, or is this more about the actual Cybertruck?
ALTCHEK: I think that the Cybertruck has definitely become the most controversial vehicle, and like you said, kids still really love it. A lot of owners I speak to still really love their car. They love how it drives. They love the way it looks. But in general, it's been the target of a lot of the harassment that has been coming for Tesla the last few months. In terms of the truck itself, some people have said that they think it was overpriced at the beginning. It was a bit of a status symbol, and so we're seeing now that it's not as much of that. It's had eight recalls since it's been released. The range is less than Elon Musk promised. The question really is, was it worth that original price tag? And now it's also embroiled in politics, so I think that just adds to the storyline.
RASCOE: BYD - this is the Chinese EV maker - they saw more vehicle registrations in Europe than Tesla for the first time last month. You know, Americans can't buy those Chinese electric vehicles. So is there another brand that is competing with Tesla sales here in the U.S?
ALTCHEK: The EV segment is growing in the U.S. Tesla is still the most popular EV brand. Earlier this week, you know, an executive at Cadillac was basically saying that more Tesla owners are switching to Cadillac, which was interesting. But otherwise, it's hard to tell, you know, if Tesla owners are going to different brands. I spoke with someone at Edmunds earlier this week who was basically saying that Tesla owners are still shopping for Tesla. That's what the data shows. There's not an indication that there's another competitor that's really stealing its customers.
RASCOE: So last week, Republicans in Congress voted to roll back EV incentives and to block California's electric vehicle mandate. We don't know if those moves will stick, but are they indicative of a general move away from EVs, in the U.S. at least?
ALTCHEK: I don't know that people are moving away from EVs. I think that there definitely has been a slowdown in buying EVs, and certainly, if the regulatory environment changes, that could impact it further. I think that the used EV market, because it's thriving so much and because you can really get a good deal, that has been a place for buyers to go to. So I think it depends. I mean, as long as there are more models coming out, I think there will be more opportunity for people in the U.S. to switch over. The issue is that the price has been a bit higher and the availability hasn't always been the same as buying a gas-powered vehicle.
RASCOE: That's Ana Altchek of Business Insider. Thank you so much for joining us.
ALTCHEK: Yeah. Thanks for having me. Transcript provided by NPR, Copyright NPR.
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