Musk: Fuel car residuals will plummet in the next few years, Tesla will rise in value

Car Stuff

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Car stuff February 11 news, according to foreign media electrek reports, local time on February 10, a Twitter user signed Sam posted and @ Tesla CEO Elon Musk.

The user argued that when the residual value of fuel cars becomes insignificant, people will give up buying fuel cars.

Musk replied to the tweet, agreeing with his view. Musk also predicted that the residual value of fuel cars will drop dramatically in the next few years.

Also, Musk is currently working to make Tesla's cars into revenue-generating assets. He said last year that Tesla cars are now appreciating in value thanks to the car's Autopilot option.

One, Musk predicted that the residual value of gasoline/diesel cars will drop dramatically

According to the news from foreign media electrek, on February 10th, local time, a Twitter user who signed his name as Sam posted a message and @ Tesla's chief executive officer Elon Musk.

The Twitter user said that the United Kingdom will ban the sale of new fuel cars from 2035, after which many countries will follow suit. Currently, Tesla has completely proved the feasibility, superiority of electric cars worldwide. Who else is going to buy a fuel car when they know its residual value will become negligible?

▲Musk replied to Sam's tweet and made a comment

Musk replied and made a comment under this tweet.

He argued that Sam's comment was important for car buyers, and Musk also predicted that the residual values of gasoline and diesel cars would drop dramatically over the next few years.

Second, Musk wants Tesla cars to generate revenue for owners

Besides warning car buyers about the risk of buying a fuel-efficient car in the future due to the possibility of accelerated depreciation, Musk is working to make Tesla's cars revenue-producing assets.

Last year, Musk claimed that Tesla cars were appreciating in value thanks to their self-driving option, according to electrek.

Later, he also confirmed Tesla's plans to "dramatically" increase the selling price of its Autopilot option over time.

Musk said that's exactly what he meant when he said Tesla cars would become "value-added assets.

▲Musk replied to a tweet confirming that he will make Tesla cars a revenue-generating product

Conclusion: Accelerating fuel-vehicle depreciation? Or will create more market space for electric cars

Today, defining cars by software has gradually become a trend.

In the fourth quarter 2019 earnings call, Musk and Tesla CFO?Zach?Kirkhorn had said that Tesla is testing low-cost and high-margin products represented by paid software upgrades. In fact according to Zach?Kirkhorn, Tesla is already monetizing from software services.

On the other hand, while it remains to be seen when Tesla's cars will become revenue-generating products, the accelerating depreciation of fuel cars in recent years appears to be intensifying.

The low residual value of fuel cars will have an impact on car buyers' decision-making, and even if they aren't yet ready to buy an electric car, they may be put off buying a new fuel car by concerns about the car's residual value.

Automakers will need to be prepared for such market changes in the future.

This article was written by the author of Automobile House Car Family, and does not represent the viewpoint position of Automobile House.