Why Tesla is so expensive: the reasons and the features of Tesla car

As you know, Tesla supplies the market with high-quality, and at the same time one of the most expensive cars. Therefore, users often wonder why Tesla car is so expensive. More on this will be discussed later.


Reasons for the high cost of Tesla cars

To answer the question, of why Tesla cars so expensive, you should study several factors that affect the price.

Expensive batteries in Tesla car

When pricing Tesla vehicles, the fact that expensive lithium-ion batteries are used is taken into account. Even though the technologies involved in the creation of batteries are constantly developing and improving, the cost of batteries does not fall in any way.

Because such car parts are quite expensive, companies cannot reduce the cost of the final product. This doesn’t just apply to Tesla. After all, other well-known brands are also engaged in electric cars, including BMW, Nissan, Ford, Kia, and Chevrolet.

Yes, you can find cheap electric cars on the market. However, you need to understand that their functionality will be several orders of magnitude lower. This also applies to performance. The cost of lithium-ion batteries depends on many parameters, including:

  1. High cost of main components. Indeed, in the manufacture, in most cases, expensive cobalt is used.
  2. Speed and complexity of cell production.
  3. The use of advanced battery technology was developed specifically for the Tesla car.

You need to understand that today there are no companies that can compete with Tesla. After all, this company supplies efficient and functional machines that have an excellent power reserve.

The best electric motors

Sophisticated technology characterizes electric motors. To make them, you need a lot of time, labor, and components. At the same time, production and engineering require certain skills. Modern electric vehicles use AC induction motors and permanent magnet motors.

While other companies have opted for permanent magnet motors, Tesla prefers induction motors. This is a rotary device that rotates inside the stator. Electricity is presented in the form of alternating current, which feeds the stator.

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After that, the energy is converted into torque, which is located on the rotor shaft. Under the influence of a magnetic field, the shaft rotates and the car moves.

Import taxes

Tesla only manufactures cars in America and China. Several models are produced in China – Tesla Model 3 and Model Y. They are supplied only to the Chinese market. Therefore, all-electric vehicles that are on market around the world are shipped from America.

You need to understand that in all countries, the import tax is different. If in Germany, the figure is 19%, then in India the tax is 100%.

Tesla car prices are high due to the tax, especially if the purchase is outside the US.

Large network of superchargers

Tesla has tried, and you can find superchargers all over the world. Therefore, no other brand can boast of an excellent quality charging network.

Charging is pretty cheap. Tesla is in the business of selling electricity at the same price it buys it for. Elon Musk has made a statement that he will never make money from the supercharger network.

As an alternative to Tesla’s electric chargers, Electrify America is used. However, the network is not that huge and is quite expensive. However, it is only available in the USA. The more customers a company has, the more charging stations are installed. Because of this, the company has to spend hundreds of millions of dollars.

It must be understood that superchargers need constant maintenance, which also requires costs. Tesla has signed contracts with other companies to install charging systems on their premises. This applies to hotels, restaurants, shopping centers, etc.

Availability of advanced technologies

Tesla machines are computers equipped with wheels. There is a personal computer inside the Tesla vehicles. Inside there is a specially designed processor, as well as equipment for processing neural networks. The company is engaged in the development and production of batteries, as well as AC motors.

Constant growth rates

It should be noted that developed companies have practically no profit. This is because all earnings are directed toward expanding the business.

Tesla is in growth mode. Elon Musk isn’t just about creating vehicles. He is constantly exploring the possibilities of creating advanced automobile factories. As you know, to build a plant, a fairly large investment is required. Often the figures reach billions of dollars.

Therefore, all Tesla cars that are sold by Tesla are required to make a profit. If this does not happen, then there is no possibility of expanding the factories, and they simply close. This is the reason why Tesla prices are so high.

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Over the past 10 years, Tesla has been constantly researching and developing battery cells that are considered a new generation. Thanks to this, it was possible to create electric battery packs with a capacity of 4680 watts. It is believed that these batteries are improved over time and launched into mass production. This requires a big investment.

Availability of fully automated driving technology

All electric vehicles that Tesla puts on the market have enough equipment inside so that the car can drive on its own. Even though it has not yet been possible to achieve full automation, the software is still considered the most advanced on the market.

Elon Musk is constantly working to improve the software for automated vehicle operation. At the same time, new updates are constantly being released to improve the performance of the wireless network. It must be understood that all of the above developments require large investments.

No other electric car company is trying to get into the production of equipment for fully autonomous driving. In some Teslas, there is a free and unlimited boost option.

As already mentioned, Tesla vehicles are distinguished by excellent efficiency. To drive 4 miles will require about 1 kWh of electrical energy. If the total Tesla vehicle mileage is 150,000 miles, then 37.5 thousand kWh of electricity will be required.

For 1 kW/h at a charging station from Tesla, you need to pay about $0.28. This means that to cover a distance of 150,000 miles, you need to pay only $10,500. However, this cost is already included in the price of the car. Therefore, you can use the charging stations completely free of charge.

Availability of modern software

Tesla cars have advanced technology when compared with other vehicles. More details about all the functions of the software will be described below.

Availability of arcade games

There are numerous arcade games, including Cup, Missile Command, Lunar Landing Module, Tempest, Asteroids, and more inside each Tesla vehicle. Therefore, being in a traffic jam, or traveling with children, you definitely will not be bored. After all, arcade games are very exciting and help to have fun.

Having a quality video recorder

About 8 cameras are located around the entire perimeter of the car. In some models, their number may be slightly larger. All these cameras together form a DVR that has a 360-degree view.

You need to understand that high-quality registrars are expensive. And you, when buying a Tesla car, do not have to spend extra money on it. This also explains the high price of the Tesla car itself.

Watchman mode

Tesla vehicles are awake all the time. They constantly monitor what is happening around them thanks to a camera system. Even if you park the car and get out of it, the security system will work.

As soon as the car perceives any situation as a threat, it is recorded on camera. A notification is sent to the Tesla owners in a mobile application, which allows them to respond in time to the theft or damage to property.

Availability of entertainment applications

Tesla cars have numerous entertainment software. Here you can watch movies, videos, and series that are released on various services, including Spotify, YouTube, Disney+, Netflix, Hulu, and various other applications.

Availability of additional hardware features

Tesla machines have a certain list of hardware features.

Having a glass roof

If you go to a regular dealer and ask for a car with an internal combustion engine, you will pay about $2,000 extra for a sunroof. Tesla cars already have a built-in glass roof that is tinted. This allows you to protect passengers from infrared and ultraviolet radiation.

Seat heating system

All Tesla cars have heated front and passenger seats. Even the central seat, which is located in the center, is also heated. There are also electric folding mirrors, which are located on the sides.

There is a heated steering wheel. Even the washer nozzles are heated. On the brushes that clean the glass, there are special pads that prevent icing.

Tesla Service Centers

Tesla differs from other manufacturers in that it does not supply cars directly to consumers. Initially, deliveries are sent to trusted dealers, who then sell cars to consumers. Dealers, on the other hand, will be responsible for servicing Tesla vehicles.

Therefore, Tesla manufacturers never contact real consumers. It should be noted that the company does not have official dealers with whom contracts are concluded. All sales are carried out through the official website of the company. Tesla does not allow users to repair vehicles.

All repairs, if required, must be carried out at only Tesla Service Centers. This is spelled out in the terms and conditions of the contract, which is signed when buying a vehicle. All Tesla cars come with extensive warranties on various parts of the car, including the motor, battery, and transmission.

If you have any problems with any part, they are quickly resolved. And you don’t have to pay for it at the service center. While the car is being repaired, the Tesla owners may be offered a car for rent, or they pay for Uber. To ensure the operation and maintenance of service centers, companies require significant investments.

Therefore, all this is initially laid down in the cost of Tesla electric vehicles. Therefore, the electric vehicle from the company will always be expensive.

The optimum ratio of price and quality

Tesla car developers are convinced that even with an additional surcharge for each vehicle, people will not refuse to buy and line up. This is because none of the manufacturers of electric cars is technologically advanced. In Tesla cars, price and quality are ideally matched.


Before buying Tesla vehicles, users may face numerous questions.

Why are Teslas so overpriced?

The main reason for the high Tesla cars cost is that the highest quality materials are used in the manufacture. The use of sophisticated technologies cannot be ignored. The company develops all components independently, which costs billions of dollars.
It uses unique materials in the batteries for the electric vehicle. Significant costs are required to design and manufacture them.

Is owning a Tesla expensive?

Tesla is considered the most expensive car on the market. In the basic configuration, the third model Tesla sells for almost 47 thousand dollars. Model X Tesla sells for about 139 thousand dollars.

Is owning a Tesla more expensive than gas?

Charging Tesla cars is almost 3.6 times cheaper than refueling a vehicle that runs on gas. On a Tesla, for every mile, you’ll spend 4.5 cents. And for a car on gas, you have to pay almost 17 cents.

Why are Teslas so expensive to insure?

Tesla spends a lot on collision insurance. Also, keep in mind that repairs and maintenance are expensive. All repairs must be carried out at Tesla Service Centers. Employees are trained first.


As you can see, Tesla’s cars are expensive not only because of the brand’s fame. In production, modern materials are used, as well as advanced technology. Even though Tesla cars are expensive, their quality and manufacturability cover all costs because the comfort of an electric car driver is above all. Wonder How many solar panels to charge a Tesla, read

Cameron Mason

I have been fond of cars since childhood. I have always been interested in knowing the principle of their work, as well as the structure. Therefore, I liked to help my father dismantle cars and fix them. Then I went to college with a degree in mechanical engineering. After all, I decided to connect my life with cars.

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