How Much Does It Cost to Own a Tesla?
Teslas range in price from around $39,000 for the base Model 3 to more than $95,000 for the Cyberbeast Cybertruck.
Insurance for a Tesla costs around $329 per month for a full coverage policy. Tax incentives for electric vehicles (EVs) can also help make Teslas more affordable.
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How much does it cost to buy a Tesla?
The base Tesla Model 3 has a base price of $42,490, while the Cybertruck starts at $69,990 before adding in tax credits.
These costs are just the purchase price, not the overall cost of owning a Tesla.
How much does it cost to lease a Tesla?
Teslas are expensive to lease, no matter which model you choose. The Model 3 starts at $349 per month for a three-year lease.
Model | Style | Monthly lease pmt. |
|---|---|---|
| Model 3 | Base | $349 |
| Model 3 | Long range | $549 |
| Model 3 | Performance | $849 |
| Model Y | Base | $399 |
| Model Y | Long range | $499 |
| Model S | Base | $1,199 |
| Model S | Plaid | $1,400 |
| Model X | Base | $1,349 |
| Model X | Plaid | $1,499 |
| Cybertruck | Long range | $779 |
| Cybertruck | All-wheel drive | $799 |
| Cybertruck | Cyberbeast | $1,078 |
The Model 3 leases are 24 months long and include up to 10,000 miles. All other leases are 36 months long and include up to 10,000 miles.
Even if you lease, you'll usually need to put down at least a few thousand dollars at signing. The Model 3 doesn't require a down payment, but other Tesla models do. You’ll need to put $1,000 down to lease a Model Y, and $5,000 for any Cybertruck model. You'll need to put down $7,500 to lease a Model S or Model X.
You’ll also often have to pay a few thousand dollars in sales taxes and delivery fees.
You will need to have full coverage car insurance for most lease agreements. Full coverage insurance includes comprehensive and collision coverage. These coverages help pay for damage to your car, no matter who causes it.
Extra costs of owning a Tesla
Insurance, charging equipment and electricity for your Tesla can add up to several thousand dollars a year in extra costs. However, they're similar to what it costs to drive gas and diesel vehicles.
Insurance
Insurance for Tesla vehicles costs drivers $329 a month, on average. Cheaper models like the Model 3 may cost less to cover, while more expensive models like the Cyberbeast Cybertruck often cost more.
Rates depend on your location, your vehicle and options, and your insurance company.
Model | Monthly cost |
|---|---|
| Model Y | $255 |
| Model 3 | $282 |
| Model X | $356 |
| Model S | $413 |
You may be able to save by buying insurance directly from Tesla. Tesla insurance coverage is similar to what top insurance companies offer, but it's only available in 12 states.
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Tesla's insurance rates are largely based on the safety score compiled through the Tesla app. You can raise your safety score and potentially pay lower insurance rates by driving safely. The app updates your score in real time and passes that information to your insurance company. The safer you drive, the better your rates should be.
Keep in mind, Tesla's real-time safety score updates are not available in California, but you can still buy Tesla-brand insurance.
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Charging equipment
Tesla doesn't include charging equipment in the base price of its vehicles. Instead, you need to buy a charger separately and use the network of Tesla Supercharger stations.
Charging equipment can add more than $3,000 to the total cost of a Tesla, depending on the chargers you choose. Here's what you can expect to spend on average for charging equipment:
- Wall connector: $420
- Universal wall connector: $650
- Mobile connector: $300
- Home backup bundle for power outages: $2,500
You'll need to pay for professional installation of any wall connectors and home backup bundles. This can add an extra $750 to $1,500 to the total price.
Thinking of switching to a Tesla? Consider these factors
Switching to a Tesla Model S could save you more than $1,580 on gas if you drive an average of 20,000 miles a year. Here are some things to consider before you make the switch.
- Tax incentives: Some states offer incentives to further reduce the cost of a new or dealer-sold used Tesla, even though the federal $7,500 tax credit is no longer available.
- How you'll charge the vehicle: You'll need to plan ahead when it comes to charging your Tesla. Consider whether you're willing to pay for a home charging unit and the electricity to power it, or if you'd rather pay to use a charging station in the community. If you rent, think about where you'll charge your car away from home.
- How much you drive: Teslas need regular charging. If you drive a lot each day, you'll need to stop to charge up, which could take hours if you're not at a Tesla supercharger station. Make sure you're comfortable with the charging options in your area.
If a Tesla fits your driving habits and you're able to install a charging unit at your home, it may be a good choice. Keep in mind that there are dozens of other electric vehicles on the market, many with a much lower price tag and more versatile charging options.
Frequently asked questions Why is owning a Tesla expensive?
Owning a Tesla may cost more than a traditional gas or diesel vehicle because of higher maintenance costs, expensive accessories and insurance prices that are higher than average. However, as more people switch to electric vehicles, the cost of ownership may come down over time.
How long do Tesla batteries last?
Tesla batteries should last for at least 150,000 miles or eight years, based on their warranty. However, poor charging practices, like letting the battery die completely often, can decrease the lifespan. Battery capacity also goes down over time, so even if the battery lasts for more than 150,000 miles, the range you'll get from each charge won’t stay the same.
Are Teslas expensive to maintain?
Teslas can cost more to maintain than traditional gas or diesel vehicles. This may be due to the specialized parts and equipment required to maintain Teslas and the limited availability of mechanics trained to work on these electric vehicles.
How much does it cost to charge a Tesla?
The average driver will spend about $500 per year to charge their Tesla Model 3. In comparison, someone driving a gas-powered luxury car would pay three times as much to travel the same total distance. You'll pay more to insure your Tesla than you will to charge it for the entire year.
Methodology
Prices for new Tesla models, charging accessories and professional installation are from Tesla's website. Used values for the Model 3, Model X, Model Y and Cybertruck are from Kelly Blue Book. Used values for the Model S are from CarGurus.
To find the average cost of car insurance for a Tesla, ValuePenguin gathered quotes from ZIP codes across the state of Texas. Rates are for a 30-year-old single man who has a good credit score and a clean driving record.
Quotes are based on a full coverage policy with comprehensive and collision coverage, along with the following limits:
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $25,000 per accident
- Uninsured and underinsured bodily injury liability: $50,000 per person and $100,000 per accident
- Medical payments: $5,000
- Comprehensive and collision deductibles: $500
To determine the cost to charge a Tesla, we considered the Tesla Model 3, which gets about 3.75 miles per kilowatt hour (kWh). According to the U.S. Energy Information Administration, residential electricity in the U.S. costs an average of 17.11 cents per kWh.
We compared the cost to charge a Tesla with comparable gas-powered luxury cars, which get around 25 miles per gallon. We used the average price of gas provided by anchor text.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
