How Much Does It Cost to Own a Tesla?
It costs between $39,990 and $107,490 to buy a new Tesla.
The average driver pays around $500 per year to charge their Tesla. That's only one-third as much as it costs to power a comparable luxury car.
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 own a Tesla?
Teslas are expensive cars, even compared to similar luxury EVs.
The most basic Tesla model currently available, the Model 3, starts at $39,990. The most expensive options, Model S and X Plaid, can cost as much as $107,490 — even before extras. In comparison, a new Toyota Corolla Hybrid has a sticker price of about $22,800.
Model | Style | Price |
|---|---|---|
| Model 3 | Base | $39,990 |
| Model 3 | Performance | $59,990 |
| Model Y | Base | $46,990 |
| Model Y | Long range | $49,990 |
| Model Y | Performance | $53,990 |
| Model S | Base | $87,490 |
| Model S | Plaid | $107,490 |
| Model X | Base | $97,490 |
| Model X | Plaid | $107,490 |
Which Tesla upgrades are the most expensive?
Like any carmaker, Tesla also offers add-ons to improve your vehicle. But adding upgrades increases the cost when you buy.
Upgrade | Cost |
|---|---|
| Paint | $1,000-$2,000 |
| Sport wheels | $1,500 |
| Black and white interior | $1,000 |
| Enhanced Autopilot | $6,000 |
| Full Self-Driving | $15,000 |
Current upgrade options available for the Model 3. Pricing and availability may differ by model.
What are Autopilot and Full Self-Driving?
Autopilot, Enhanced Autopilot and Full Self-Driving (FSD) are levels of automation software that you can choose to add to your Tesla.
- Standard Autopilot comes with every new Tesla and includes traffic-aware cruise control and lane assist.
- Enhanced Autopilot includes highway navigation, automatic lane change and automatic parking. It also includes Smart Summon, which calls your car to you in a garage or parking lot.
- Full Self-Driving includes traffic light and stop sign control, which will stop for visible traffic lights and stop signs. As the technology evolves, your car could eventually drive all the way to your destination with minimal input from you.
Tesla's autopilot capabilities have been improving over time, but they've also become increasingly expensive. When Full Self-Driving was first announced, it cost $8,000 total to "preorder" Full Self-Driving. That price has nearly doubled.
It's not clear when, if ever, Full Self-Driving will be cleared for use by the general public.
Additional costs of owning a Tesla
Tesla doesn't include charging equipment when you buy a new car. A wall connector costs $425, while a mobile connector costs $230. You'll also have to confirm your electrical panel can handle the extra load from an EV charger.
If you're buying a new Tesla, you won't have to pay for maintenance or repairs right away. Tesla's new car warranty covers your car for the next four years or 50,000 miles, whichever comes first. And you won't need to worry about oil changes for an electric car, though you'll still need to get parts like your brake pads and tires checked.
The good news is you might qualify for an EV tax credit to make the upfront cost of buying a Tesla more affordable.
How much does it cost to lease a Tesla?
Teslas are expensive to lease, regardless of which model you choose. The Model 3 starts at $419 per month for a three-year lease.
Model | Style | Monthly lease pmt. |
|---|---|---|
| Model 3 | Base | $419 |
| Model 3 | Performance | $629 |
| Model Y | Base | $519 |
| Model Y | Long range | $559 |
| Model Y | Performance | $639 |
| Model S | Base | $1,189 |
| Model S | Plaid | $1,509 |
| Model X | Base | $1,139 |
| Model X | Plaid | $1,509 |
All leases are 36 months long and include up to 10,000 miles.
Even if you lease, you'll need to put down at least a few thousand dollars at signing. The Model 3 and Model Y require a $4,500 down payment. You'll need to put down $7,500 to lease the Model S or Model X.
In addition, you'll typically have to pay a few thousand dollars in sales taxes and delivery fees.
Your lease agreement will typically require you to have full coverage car insurance. Full coverage insurance includes comprehensive and collision coverage. These coverages help pay for damage to your car, regardless of whose fault it is.
Cost of insuring a Tesla
Full coverage car insurance for a new Tesla costs around $329 per month.
But as you'd expect, the pricier and faster models cost more to insure.
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The Model Y is the least expensive Tesla to insure, with a typical price of $255 per month for full coverage. And the Model S costs the most, at $413 per month.
Full coverage car insurance rates by Tesla model
Model | Monthly cost |
|---|---|
| Model Y | $255 |
| Model 3 | $282 |
| Model X | $356 |
| Model S | $413 |
The cheapest insurance company for a Tesla is Tesla Insurance, which is run by the car manufacturer itself. However, it's only available in 12 states. Tesla drivers in other states should consider State Farm, USAA or Nationwide.
Where is Tesla brand insurance available?
- Arizona
- California
- Colorado
- Illinois
- Maryland
- Minnesota
- Nevada
- Ohio
- Oregon
- Texas
- Utah
- Virginia
Every state except California uses Tesla's Safety Score to determine rates. If you score well, you can get even cheaper rates from Tesla Insurance.
Cost of charging a Tesla and gas savings
Teslas are powered by electricity, which allows you to get around without buying gas. But charging your Tesla isn't free. It requires a good deal of electricity. So how much will you save on gas with an electric vehicle (EV)?
People who drive 12,000 miles per year can save around $1,236 each year. That's the average distance driven by most Americans.
Cost to drive a Tesla vs. a gasoline-powered car
Annual mileage | Luxury car | Tesla | Savings |
|---|---|---|---|
| 5,000 | $728 | $213 | $515 |
| 12,000 | $1,747 | $511 | $1,236 |
| 20,000 | $2,912 | $851 | $2,061 |
Annual costs are based on a Tesla Model 3 and an average gas price of $3.64 per gallon.
Keep in mind that the cost of electricity can vary by location, time of year and even time of day. You may be able to save even more on fuel by charging your car late at night, when energy demand is lowest. Contact your utility company to find out if there are peak versus nonpeak electricity rates.
Not every public electric charging station is free. You'll also likely pay more to charge your Tesla at a Supercharger or another commercial charging station. You'll save the most money by charging at home.
Savings from tax rebates
Since Teslas are electric cars, you could save some money through rebates and tax incentives.
Starting in April 2023, some Tesla models will qualify for a tax credit as part of the Inflation Reduction Act (IRA). The new tax credit will be applied as a discount when you buy the car instead of on your taxes. That means you'll get the savings right away.
How much is the Tesla tax credit?
Model | Style | Tax credit |
|---|---|---|
| Model 3 | Rear wheel drive | $3,750 |
| Model 3 | Performance | $7,500 |
| Model Y | All wheel drive | $7,500 |
| Model Y | Long range | $7,500 |
| Model Y | Performance | $7,500 |
The Model S and Model X do not qualify for a tax credit. That's because the EV credit included in the IRA only applies to:
- Cars priced below $55,000
- SUVs priced below $80,000
- Vehicles assembled in North America
- EVs with a portion of the battery made in the U.S. or a free-trade country
Additionally, only people who make less than a certain amount of money will qualify. The limit is currently $150,000 per year for single earners, $225,00 for heads of household and $300,000 for couples filing jointly.
Some states give additional benefits, as well. But only California, Colorado and Massachusetts offer incentives that apply to leasing a Tesla instead of owning one.
Frequently asked questions
How much does a Tesla car cost?
The cost of a Tesla ranges from $39,990 to $107,490. That doesn't include add-ons like sport wheels or Enhanced Autopilot. Some models also qualify for a tax rebate, which can help make them more affordable.
How much is insurance for a Tesla?
Full coverage car insurance for a Tesla costs $3,947 per year on average. That rate will vary based on which model you have, where you live, your driving history and which insurance company you choose.
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.
Methodology
Tesla pricing was sourced from the company's website.
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 15.96 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 AAA.
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.
