Does owning a Tesla save you money?
The cost savings associated with owning a Tesla or any electric vehicle (EV) depend on various factors, including your driving habits, local electricity rates, incentives, and the specific Tesla model you choose. Here are some factors to consider:
Fuel Costs:
vehicles are generally more energy-efficient than traditional internal combustion engine vehicles. Charging an electric car is often cheaper per mile than fueling a gas-powered vehicle, especially if you charge at home during off-peak hours.
Maintenance Costs:
Given that EVs have less moving parts than traditional Internal Combustion Engine vehicles, there are less maintenance costs. There are no oil changes to do and no water pumps that can fail or timing belts to change. With regen braking and one pedal driving, the brakes don’t have any or little wear.
But if you track your Tesla, it is recommended to upgrade the brakes since the calipers are undersized since it relies on the regen braking to make up for the smaller brake system. For tracking it recommended to upgrade the brake pads to a more aggressive pad and upgrade the brake fluid.
Incentives:
For those that qualify to the federal tax credits and meet the income requirements, the incentives make buying a Tesla cheaper than the traditional ICE equivalent. With current pricing a Model 3 Short Range Plus can be had for $28,490 after the tax credit.
Depreciation:
During 2020, with the vehicle shortages, Teslas had little to no depreciation and you could sell a used one for the price of the new ones. But with the recent slashing of prices from Tesla to entice new adoption to EVs has caused the used Tesla market to drop significantly.
For example I bought my 2023 Model Y Performance back in March 2023 for $58990 before tax incentive and currently in November 2023 it goes for $52490 before tax incentive.
Charging Costs:
The cost of charging your Tesla depends on the electricity rates in your area. Charging at home is usually more cost-effective than using public charging stations.
Upfront Cost:
Teslas are generally more expensive upfront compared to traditional vehicles. However, over time, the savings on fuel and maintenance costs may offset the higher initial purchase price.
It’s important to note that individual circumstances vary, and the financial benefits of owning a Tesla or any electric vehicle can depend on factors like local incentives, driving patterns, and electricity costs. Additionally, as technology advances and the market for electric vehicles evolves, the economic landscape may change. Before making a purchase decision, it’s advisable to consider all these factors and calculate the total cost of ownership based on your specific situation.