Tesla (TSLA, Financial) has faced criticism after consumers discovered that the vehicles they were obligated to return post-lease were not used for the touted Robotaxi fleet. Instead, these vehicles were upgraded with software and resold for profit, disappointing consumers who believed they would contribute to Tesla's autonomous taxi service.
In 2019, Elon Musk announced that leased Model 3 vehicles would be converted into a self-driving taxi fleet, promising over a million robotaxis. To date, this promise remains unmet. Insiders revealed that Tesla didn't develop a robotaxi fleet. Instead, it added features like the Full Self-Driving (FSD) software, initially priced at $15,000 and later reduced to $8,000, and an acceleration boost for $2,000, enhancing resale value.
Only recently did Tesla change its policy, allowing new leaseholders to purchase their vehicles. Many older leaseholders, however, found their vehicles resold at higher prices.
This revelation has stirred consumer discontent, with individuals like Joe Mendenhall expressing frustration upon learning his car was sold rather than used as promised. The myth of a pending self-driving fleet has benefited Tesla's stock for years, influencing investor sentiment on TSLA shares. However, the depreciation of used Tesla vehicles is significant, with a 7.6% drop in average value over the past year, affecting models like the Model Y and Cybertruck.
