- The “Tesla Effect” looks like it’s affecting luxury brands, mostly European. The effect is mostly coming from people trading in their luxury vehicles, and buying Tesla Model 3’s, for example. Mid-level luxury cars are in the same price range as Tesla Model 3’s (for the most part), at least in the US market. This is causing many used European luxury cars to loose value in the secondary markets.
Note/Transparency: I am a Tesla Stock holder. I believe in Tesla’s mission and in most of the crasy good ideas that Elon Musk is working on. Read Elon’s book, its great.