What does it actually cost to charge a Tesla, and how much do you save on gas? Let’s examine the response in more detail to determine whether purchasing this particular brand of electric vehicle would be a wise financial decision.
Electric cars are becoming more and more well-liked as a method for people to save money and support sustainable energy sources. However, are all-electric vehicles available to the public? What amount of money can you really save by moving from a gas-powered vehicle to an electric one?
These inquiries become particularly pertinent in the context of Tesla, one of the most recognizable electric vehicle manufacturers worldwide. Finding out if you’re getting your money’s worth from a Tesla purchase might be crucial because Tesla automobiles are frequently more costly than numerous other brands of electric vehicles.
You wouldn’t be the only one researching how to buy Tesla stock or replace your present vehicle with a brand-new Tesla Model S given the trend toward purchasing electric cars and cutting emissions.
But regardless of how practical and appealing these vehicles may be, the issue of whether owning a Tesla is worthwhile frequently arises. Or does it rank among the major financial errors?
Before purchasing a Tesla vehicle, it is definitely worthwhile to run the numbers because they are among the most expensive vehicles on the market.
That is precisely what we accomplished for you in this post. We have the complete picture of all the incoming and outcoming cash flow concerned with owning a Tesla car by taking into account elements like annual payment, gas savings, or even continuous tax incentives.
Here is the overview you need to know before purchasing a Tesla car, along with all the information you need to determine whether doing so is the correct choice for you.
- 1 Is it cheaper to charge a Tesla or buy gas?
- 2 Is a Tesla worth the money?
- 3 How much do you save on gas with an electric car?
- 4 Is purchasing a used Tesla worthwhile?
- 5 Electric vehicle advantages and disadvantages
- 6 Do you have to pay for gas with a Tesla?
- 7 Extra expenses for Tesla drivers
- 8 Conclusion
Is it cheaper to charge a Tesla or buy gas?
How much would it cost to fill up a car with gas?
The price of refueling a gas car varies according to the volume of the gas tank and the type of fuel needed.
Having a less efficient vehicle will also result in higher gas costs overall.
The compact automobile Honda Civic 4-door has a 12.4-gallon gasoline tank. Gas will cost nothing less than $4.153 per gallon, so filling the tank would cost around $51.50 at least. With a combined mileage of 36 MPG (city/highway), the Honda Civic is also reasonably efficient. The Honda Civic’s overall fuel cost is about 11.54 cents per mile.
A 17.4-gallon gasoline tank is included in the luxury midsize 2021 Mercedes-Benz E350 4matic. According to AAA, the price of a gallon of premium gas for this vehicle in April 2022 will be $4.838, making a full tank cost roughly $84.18.
With combined city/highway mileage of 25 miles per gallon, it has a range of 435 miles. The average gasoline cost for this Mercedes-Benz is 19.35 cents per mile.
The 18.8-gallon gasoline tank is standard on the midsize Kia Telluride AWD from 2022. Filling up the tank costs roughly $78.08 and uses normal gas. With a combined city/highway mileage of 21 miles per gallon, this car can drive 395 miles on a single tank of fuel. The Kia Telluride’s average fuel cost per mile is 19.78 cents.
The fuel capacity for the Hyundai Tucson AWD in 2022 is 14.3 gallons. It uses normal gas, which results in a tank fill-up price of roughly $59.39.
With a combined mileage of 26 MPG (city and highway), this car can drive 372 miles on a single tank of gas. The Hyundai Tucson’s average gasoline cost is 15.97 cents per mile.
The price per mile for each Tesla model is compared below: Tesla Model 3: $0.036 per mile Model Y from Tesla: $0.037 per mile Model S Tesla: $0.039 per mile Model X from Tesla: $0.044 per mile.
Compared to gas, electricity costs for charging a Tesla is far less expensive. If you charge your Tesla at home as opposed to a supercharging station, the electricity costs are significantly lower. Of course, electricity prices vary.
Is a Tesla worth the money?
Anyone wishing to purchase a luxury car with a contemporary appearance as well as an electric vehicle frequently chooses Tesla cars. These cars have evolved into somewhat of a status symbol in addition to being more environmentally friendly than your regular gas-powered sedan, especially given their price.
But is the steep price really justified? To give the most accurate image of how much becoming a Tesla owner truly costs and whether these vehicles are worth the high premium the automaker charges for them, we’ll examine things like purchase price, insurance expenses, and possible car maintenance, energy costs, savings on gas and taxes in this section.
The tax credits
The tax credit for Tesla was previously substantial, but now the substantial $7,500 tax credit was rolled out for Tesla drivers, leaving them solely with the tax credits that are being granted by their state.
The tax credit may amount to as much as $2,500 depending on the state you reside in, but it may also be lower or none. There is a lot of variance from state to state in the tax credit, but states such as Colorado, California, and Delaware are currently setting the bar for a hefty tax credit for new Tesla owners.
For instance, some jurisdictions only provide the incentive for automobiles with a purchase price above or equal to a specified amount.
Other states place restrictions on which Tesla models qualify for incentives. Make sure you examine what is available in your state if the extent of your tax advantage is a determining factor in determining whether a Tesla is worthwhile for you or not.
Despite the fact that the actual cost of insurance for your Tesla will vary depending on your state, the model you choose, and also your driving record, Tesla cars have historically had higher insurance costs than other gas vehicles.
This is partly because of its unusual components, such as the electrical system and the aluminum frame, which may result in greater repair expenses. Additionally, some insurance providers categorize Teslas as luxury cars and consequently charge exorbitant insurance costs.
Tesla has developed its own insurance program that makes the claim to have lower premiums than traditional insurers, but it is now only offered in California.
Your insurance premiums will also be affected by the amount of coverage you select, but according to certain estimates, the estimated price for insuring a Tesla Model S is about $3,673 per year, whereas the average price to insure a new Toyota Camry is only $2,200 per year.
Obviously, these figures will change depending on your driving record and zip code; however, prospective purchasers should be aware of the greater cost of insurance for a Tesla.
Whenever it comes to maintenance, Teslas are quite different from conventional gas-powered vehicles. You won’t need to take your automobile to the workshop very frequently if your engine doesn’t require routine maintenance like changing the fuel filter and the oil. More likely than not, your Tesla will need software updates.
The Toyota Camry’s five-year maintenance cost is estimated by the automotive website Motor1 to be $4,981, or $996 a year. On the contrary hand, Motor1 calculates that the cost of maintenance for a Tesla Model S over five years will be $1,490, or $298 annually.
During the first ten years of operation, a Tesla Model 3 will cost roughly $3,587 for repairs and maintenance.
Despite the considerable annual savings, it’s crucial to remember that Teslas aren’t completely impervious to car problems. In fact, the cost of replacing the battery pack in your automobile when it inevitably breaks down might range between $12,000 to $17,000.
You won’t have to be concerned about this expenditure right now because the battery warranty of the Tesla will insure you for the initial eight years or rather 150,000 miles, depending on whichever comes first.
Although their range per charge is less, several older Teslas with their original battery packs are still running strong after 300,000 and 500,000 miles.
How much do you save on gas with an electric car?
The average individual can save roughly $14500 on gas over the course of 15 years by driving an electric car as opposed to purchasing one. The annual driving savings come to nearly $1000.
The gas savings in this area are rather substantial, even when we take into account the gas prices of a gas-powered car with a comparable size and fuel efficiency such as the Toyota Camry, which gets about 32 MPG on average.
Let’s say you log 15,000 miles a year on your Camry. At the current national average, gasoline costs $3.39 per gallon, you’ll need to spend $1,589 on gas only to operate your Camry. If you drive a less fuel-efficient car, your expenses would increase.
On the contrary, the Tesla Model S costs $555 to drive the same 15,000 miles on electricity due to its $0.037 per mile electric charge cost (about what you’d spend to charge your Tesla at home). So, yeah, a Tesla does save money on a lot of fuel.
But don’t forget to factor in the expense of setting up a charging station at home and Tesla charging costs, which you will probably do rather than relying solely on the Tesla Supercharger network.
Installing a charging station at home typically costs $1,200. Therefore, even though you would save money due to fuel costs every year that you own a Tesla, there is also the upfront cost of the vehicle.
The average charging fee per mile for all Tesla models is 4.56 cents. Therefore, if you just charge your Tesla at home, you can anticipate a monthly rise in your electricity bill of roughly $50.
These figures show that it would take the average Tesla owner around 10 years to save enough money on petrol purchases to make buying a Tesla less expensive compared to a gas car.
Is purchasing a used Tesla worthwhile?
Purchasing a secondhand or used Tesla will provide its own special set of difficulties, such as ensuring that the vehicle and its massive battery pack remain in good operating order, which may be challenging to do.
Unlike many electric vehicles, which have a tendency to lose value quickly, Teslas often lose less value than the industry standard.
The typical new sedan (either with internal combustion or electric engines) diminishes by 39% over the first 3 years, whereas electric cars depreciate at a 52% rate in the same period, which examined the sales of off-lease automobiles. A Tesla Model S, meanwhile, only lost 36.3% of its value.
If you’re considering purchasing a brand-new Tesla and believe it’s beneficial for a car to maintain its value, you might see it as a plus. Alternatively, if you’re searching for a great price on a Model S that isn’t too old, you may perceive it negatively.
Electric vehicle advantages and disadvantages
Although electric vehicles provide numerous advantages over gas-powered car, you should be aware of some drawbacks as well. Their benefits include:
They are energy efficient.
A higher proportion of the energy required to fuel them is transformed into renewable energy.
Since they don’t spew carbon dioxide into the air like a gas-powered car will do. However, the electricity source being used to recharge them could produce emissions if you’re not using clean energy to power them.
Lower ownership costs
Their maintenance expenses are frequently significantly cheaper than those of conventional vehicles since they lack an internal combustion engine. Driving an electric vehicle is less expensive than driving a comparable gas-powered car when combined with fuel savings from not having to fill up the car’s gas tank with gas.
You should take into account the following electric car drawbacks:
They typically have shorter ranges
Typically, an electric car’s battery requires recharging before the tank of a comparable gas car needs to be filled.
They require more time to refuel
You’re certainly used to adding gas to your car whenever the tank is empty; however, electric cars typically demand a little more forethought. You should anticipate that charging will take around 15 minutes, even with the quickest charger. Furthermore, you’ll need to visit public chargers less frequently if you have an electric car charger installed at home, though.
They typically have greater initial outlay costs
An electric vehicle may cost more upfront than a gas-powered car, while it might be less expensive overall. Depending on how frequently you charge your electric car and the temperature at which you store it, it’s also feasible that you’ll need to replace the battery modules over the course of the car’s lifetime.
Do you have to pay for gas with a Tesla?
No. Gas can’t be added to a Tesla vehicle. They lack petrol tanks and plug-in charging connectors, so you couldn’t even if you wanted to.
Yes. Since the beginning of the business, Tesla Motors has only produced electric vehicles. It was established on the principles of clean technology and energy, which still hold true today. Even the older Tesla models are all electric autos.
Tesla automobiles are entirely electric. They don’t even have an internal combustion engine, let alone consume gasoline. Your Tesla car’s battery bank, which supplies all the power required to drive them, must be charged in order to be used.
A gas-powered generator can be used to charge a Tesla vehicle. When visiting isolated locations, some people even bring diesel generators as a backup in the event that their Tesla batteries run out.
Extra expenses for Tesla drivers
The cost of owning a Tesla extends beyond the cost of in-home charging. While comparing the math of driving a conventional car against a Tesla, one factor to bear in mind is fuel prices, but you should also look into any other expenses that Tesla owners may incur.
Here are a few additional Tesla costs you may not have considered:
Chargers for the home: The Wall Connector charging option will cost you at least $500 to purchase. The cost of hiring someone to install it, which may potentially exceed $1,000 depending on the work that must be accomplished with your current electrical system, is also an additional expense.
The NEMA 14-50 converter for 240-volt outlets costs $50, but if you don’t already have an outlet, you’ll need to pay to have one put in; this might cost about the same as installing a Wall Connector.
Insurance costs: As of March 2022, the average cost of auto insurance in the United States was close to $1,500; however, this figure can fluctuate greatly based on a number of variables. Tesla owners typically pay between $2,000 and $4,000 on average for auto insurance.
Supercharger cost: While using a Supercharger to quickly charge your Tesla sounds good, you’ll probably have to pay for the privilege. Charges at Superchargers are frequently substantially more expensive than charges made at home.
Sticker shock: The majority of Tesla automobiles are expensive, so if you’re interested in purchasing one, you need to consider your initial outlay. For instance, the average car costs roughly $46,000 in the United States (for February 2022).
The greater-range Tesla Model X (coming March 2023) starts at roughly $115,000, while the longer-range Tesla Model S starts at almost $100,000. The Tesla Model 3 is more inexpensive at roughly $47,000, but several trucks and SUVs with much more capacity and amenities are also available at that price.
Car maintenance: Provided everything is working as it should, Tesla’s basic maintenance should be rather minimal.
However, you can be looking at some costly costs should you need to replace something, like the battery.
In actuality, replacing a battery may cost more than $10,000.
Tesla vehicles don’t need gas. The wheels on all variants are powered by batteries and are entirely electric. They also rely on an electric motor rather than an internal combustion engine.
Tesla is a low-maintenance electric vehicle that costs less to fuel than gasoline-powered vehicles. Every mile your Tesla travels will result in savings for you.