comments An Australian Tesla driver has taken to social media to complain about the dramatic amount his brand new car had depreciated in value in a matter of weeks. The Sydney driver said he spent close to $100,000 on a 2026 Tesla Model 3 Performance with the expectation it was a 'premium' product that would hold its value better than most cars. However, in just 12 weeks the trade-in value had plunged by almost $37,000. 'I get that cars depreciate, but this feels next level,' he said. He said he felt 'beyond frustrated' and then shared a screenshot which appears to be an official Tesla trade-in estimate showing the car's value at $63,400. 'You work hard, make what you think is a smart purchase, and then watch tens of thousands (of dollars) disappear overnight. 'Pretty hard not to feel ripped off when the numbers hit like that.' According to recent data, electric vehicles in Australia seem to depreciate at an accelerated rate compared to petrol-powered vehicles. A Tesla owner has complained after their 2026 Model 3 Performance plunged in value over three months The Sydney driver said it was he had expected the Tesla to not depreciate as much as other cars The Australian Automotive Dealer Association's (AADA) Automotive Insights Report for 2025 studied Australian used-car sales for the previous 12 months to get the figures. It found a one-year-old EV would on average lose 25 per cent of its value, while petrol models lost about 11.5 per cent after one year. Diesel-equipped vehicles, excluding utes and vans, depreciated just 5 per cent. However, the best value-holding models were hybrid electric and petrol cars, which dropped just 1.7 per cent over a year. Multiple reasons have been given for fully-electric vehicles experiencing a greater drop in resale value. The AADA said periodic 'aggressive OEM discounting' resulted in new models appearing on the market at prices that would rival second-hand models. In addition to promotions, the price can also be affected by developments in the EV technology. Throughout 2024, for example, a new Tesla Model 3 dropped from $61,990 to $54,990 and the Model Y dropped from $65,400 to $55,900, drive.com.au reported. Tesla's billionaire owner Elon Musk claimed back in 2019 that the vehicles would 'increase' in value because they could be upgraded with new software to improve their self-driving features Other brands also cut their EV prices such as Jeep, Nissan, Ford and MG with its MG4 going from $40,990 to $30,990. The cutting-edge models are also favourable to buyers because of the new features such as improved cooling and charging. Another factor was the emergence of new EV brands in Australia, mostly from China, challenging the dominance of established carmakers and often undercutting prices.