How Much Does It Cost To Operate a Tesla?

Despite being one of the newer players on the auto-manufacturing scene of late, sales of electric vehicle-maker Tesla (TSLA) have skyrocketed in recent years, taking the Austin, Texas-based clean energy company from a relative minnow at its founding in 2003, to one of the most important car producers anywhere in the world today.

Of the many reasons behind Tesla’s rise in popularity, one of the most important has to be the perceived benefits of owning an electric vehicle over a traditional gas-fueled car, especially the apparent lowered running costs associated with driving a Tesla.

Not only is a battery or plug-in electric vehicle better for the environment, it also doesn’t need the usual maintenance checks that older fossil fuel-reliant cars require. You won’t need an oil change with a Tesla vehicle, and gone are the days of having to stop at a petrol station to top-up your engine every few miles.

But is it really cheaper overall to run a Tesla car? We examine the financial aspects associated with owning an electric vehicle, and whether the much-vaunted cost savings of driving a Tesla really stack up.

How Much Does A Tesla Cost To Buy?

When it comes to considering the economic benefits of owning an electric-powered automobile, one of the primary things to think about is the initial cost outlay of buying the vehicle in the first place.

The problem with pricing-up the cost of a Tesla car is the fact that there’s lots of optionality when it comes to choosing a particular vehicle. The company charges for extras such as full self-driving functionality, as it does with features like interior décor and additional paint color palettes.

However, in general, the company’s most affordable vehicle, the Tesla Model 3, will start at around $42,000, moving up to $84,490 for its mid-range Tesla Model S, and topping off at $250,000 for its sporty Roadster, which will be available sometime later this year.

How Much Does Your Electric Bill Increase With a Tesla?

The exact amount you pay in energy costs to use your Tesla will depend on a number of factors. Principally, these will be:

• how much your local electricity energy rate is,
• your total mileage per month, and
• where you choose to charge your Tesla.

The average cost of electricity in the United States is given to be around $0.10 per kilowatt-hour. This means that to charge a Tesla Model Y engine with a 75 kWh battery will cost you $7.50.

However, if you use a Tesla Supercharger to replenish your engine – which is much quicker, but comes with an additional fee – you would expect to pay about $0.25 per kilowatt-hour – or $18.75 per charge.

How Much Does It Cost To Operate a Tesla?

Tesla states in its own car maintenance guide that its cars do not require annual maintenance checks, which should, in theory, lower the price of running its electric vehicles quite substantially. In fact, Tesla’s standard 4-year bumper-to-bumper warranty, as well as its 8-year battery and drive unit warranties, will cover you for the cost of most repairs.

In place of yearly check-ups, Tesla recommends that owners use its maintenance services on an as-needed basis, changing or replacing things such as the cabin air filter, tires, and brake fluid every few years as and when it becomes necessary.

Because Tesla cars contain fewer moving parts than a typical combustion engine, there are simply fewer occasions for things to break or wear out. But when things do go wrong, owners can expect to pay around $350 for a wheel bearings replacement, $585 for a full service with brake flush, and $300-$400 for a brake caliper repair.

How Much Does A Tesla Home Charger Cost?

For those that want to benefit from cheap night-time electricity rates, there’s always the option of having a Tesla Wall Connector installed at your place of residence.

This saves you the hassle of having to wait around at community charger locations, and gives you the potential of cutting down on your electricity bill as well.

Tesla Wall Connectors cost $550 per unit, but additional expenses are likely to be incurred as these must be fitted by a qualified electrician.

Is Tesla Charging Free?

It might come as a bit of a surprise, but Tesla does offer free charging to some of its customers, notably those who purchased their vehicle in the early days of the company’s operations.

In fact, free, unlimited use of its Supercharger network of charging stations was a big draw for consumers back then, and the scheme is still ongoing in some respects.

In general, most cars bought before 2017 are eligible for free charging, while a few bought after this time are eligible too. The rules for which cars still qualify for the scheme are complex, and it’s best to contact Tesla directly if you have any queries in this regard.

Do You Actually Save Money with a Tesla?

While the savings you make on maintenance costs alone make a Tesla vehicle an attractive choice for economically-minded drivers, it’s on fuel expenditure margins where the brand really shines.

For instance, the Model Y vehicle we used as our example earlier can go for a maximum of 370 miles on one charge, which we estimated cost $7.50. This works out at $0.02 per mile.

Comparing to a typical gas-propelled SUV, such as the Ford Puma 1.0L EcoBoost 125PS – which has a fuel efficiency of 48.7mpg – this in turn works out at $0.07 per mile, assuming a gallon of petrol costs $3.645.

As you can see, this makes the Tesla model more than 3-times cheaper than the Ford – a huge cost saving on any day of the week.

Even accepting that electricity prices vary throughout the country – and that taking an “average” value might be misleading in some cases – in general, compared to the cost of gasoline-powered cars, electricity usage in Tesla vehicles almost always comes out cheaper.

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The author has no position in any of the stocks mentioned. Financhill has a disclosure policy. This post may contain affiliate links or links from our sponsors.