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You Know You Want A Tesla

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Will These Things Come Back in a Post-COVID-19 World?

September 06, 2020

You Know You Want A Tesla

The world has been marveling at the amazing ride of Tesla stock throughout the craziness that is the year 2020. At its highest, Tesla stock had returned over 475%! The story is yet to be told as to whether or not the number of cars they sell supports the value of the stock price, but one thing is for sure. Tesla makes a car that is a blast to drive, and people who own them often say there's no way they could go back to a combustion engine.

So how do you get to cross the high price barrier of entry to own one? Buy used.

Here's what to consider when making your decision:

  • Start the Search: Use a website like www.ev-cpo.com, which does a better job at searching through Tesla's inventory. You can narrow your search down to the exact specifications that you're looking for. The search is global as well, so overseas readers are in just as much luck.
  • Warranty: Buying directly from Tesla puts you in a better position to be covered by Tesla if you have problems with your car. Tesla covers the remaining 8-year battery & drive warranty plus either a 2 year 100k max odometer, or 4 year 50k miles.
  • Battery Size/Life: Be honest with yourself on what size battery you actually need. Owners do recommend getting the largest size you can afford, but if your daily commute isn't long you can absolutely save money by getting a smaller size and just charging overnight at home. You'll be good to go with a fresh battery to start every day. Remember though, Tesla batteries are covered for 8 years or 150k miles, and there are many documented cases of cars being driven in the hundreds of thousands of miles where battery degradation hasn't been a significant issue.
  • Upgrades: To make their inventory more attractive, Tesla often offers both hardware and software upgrades as well as free Supercharging to cars they have in stock. An example would be a 60kw battery that they'll upgrade to a 75kw, or they could add full self-driving to a car whose hardware doesn't support it.
  • High Mileage: One thing that's important about Teslas is that there are only around 22 moving parts on the cars. Because of that, a higher mileage Tesla may not have the same worries as an equivalent traditional car. There are far fewer parts to wear out and potentially replace which could significantly reduce your maintenance costs over your length of ownership. Many owners report that tires and brakes are among the main replacement parts needed.
  • Battery Day: People are suspecting that Elon's major battery technology announcement on September 22nd could revolutionize the cost per kilowatt for electric cars. This technology could finally bring them in line with cost targets for gas cars. As these changes get implemented, they could further reduce the price of Teslas with their older battery technology. Because Tesla does offer regular software upgrades to all their cars, it is likely that some of those benefits will reach older cars where hardware permits.

What's important to know here is that if you're willing to do your homework, you could find your way into the driver's seat of your dream car for considerably less than what you think. You just need to be patient and use the resources available to you.

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A Childhood Hobby Turned Money-Making Machine

About the author

Jeremiah Thompson wearing a suit

Jeremiah Thompson

Vice President, Private CFO®

Originally from Washington, DC, Jeremiah has previously worked for Ameriprise Financial. For his final two years at Ameriprise, he led his office in production, client acquisition and financial planning.

After graduating from James Madison University in Virginia armed with a degree in Music Business (that's right.. Music Business), Jeremiah spent several years building two organizations that had groups touring up and down the east coast. Those unique experiences of running his own business gave him great insight into what it takes to actually run, market, and grow an organization from the garage to getting on airplanes to go to work.

While not working, Jeremiah loves to spend time being amazed by his wife Renée, young daughters Gianna & Sabina and family dog Pelé. He's passionate about physical fitness, US Soccer, NFL Football, and music/studio production.

Background and qualification information is available at FINRA's BrokerCheck website.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

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Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

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