How Much Money Do You Save Owning a Tesla? (2026)

The honest answer depends on what you're comparing, how you finance it, and how long you keep it. Owning a Tesla saves money in some places and costs more in others. Here is what the numbers actually look like over five years.

Where Teslas Save Money

Fuel

The most consistent saving. A Tesla Model Y Long Range uses approximately 25 kWh per 100 miles. At the US average electricity rate of roughly $0.17/kWh, that works out to about $510 per year for a driver covering 12,000 miles.

The same driver in a comparable gas SUV at 28 MPG pays around $1,500 per year at $3.50 per gallon.

Annual fuel saving: roughly $990. Over five years: around $4,950.

That saving holds regardless of whether you finance or buy outright, and it compounds if gas prices rise.

Maintenance

Teslas eliminate oil changes, transmission service, spark plugs, timing belts, and exhaust repairs. What remains is minimal: tire rotations, cabin air filter every two years, brake fluid every three years, and windshield wipers.

Tesla owners typically spend $200 to $400 per year on maintenance. Comparable gas car owners spend $800 to $1,200 per year.

Five-year maintenance saving: $2,000 to $4,000.

Brakes

Regenerative braking does most of the work of slowing the car, which means brake pads last significantly longer than on a gas vehicle. Many Tesla owners report their original pads lasting 100,000 miles or more. This saving is not large in isolation but it is real and consistent.

Where Teslas Cost More

Purchase price

A new Tesla Model Y Long Range costs $46,630. A Toyota RAV4 Hybrid starts at $37,505. That is a ~$9,000 gap at purchase, which is the biggest number in the five-year comparison.

On the used market, the gap narrows considerably. A 2022 Model Y Long Range is available for $29,000 to $32,000, while a comparable 2022 RAV4 Hybrid runs $31,000 to $36,000. Used Teslas have become genuinely competitive.

Insurance

EV insurance runs 10 to 20 percent higher than comparable gas vehicles due to higher repair costs and more specialized components. A Model Y typically costs $1,800 to $2,400 per year to insure. A comparable gas SUV runs $1,500 to $2,000.

Five-year insurance premium difference: roughly $1,500 to $2,000 more for the Tesla.

Tires

EVs wear tires faster than gas cars because they are heavier and the instant torque accelerates wear. Most Tesla owners replace tires every 20,000 to 30,000 miles rather than 40,000 to 50,000 miles on a gas car. Over five years this adds roughly $700 to $900 in additional tire costs.

Home charger installation

A Level 2 home charger typically costs $700 to $1,700 installed. This is a one-time cost but it belongs in the five-year calculation.

The Full Five-Year Comparison

New Model Y Long Range vs. Toyota RAV4 Hybrid, 12,000 miles per year:

The Model Y costs just over $1,000 more on a net five-year basis when new. That gap closes significantly when you buy used. A 2022 Model Y Long Range at $30,000 versus a 2022 RAV4 Hybrid at $33,000 actually flips the comparison in the Tesla's favor.

Where Financing Rate Changes the Math

The financing rate is the variable most within your control and most consistently under optimized. On a $50,000 Tesla loan, the difference between 5.25% and 8.5% APR over 60 months is roughly $4,600 in additional interest. That more than erases the fuel saving over five years if you get the rate wrong.

Buyers who finance through a dealer or marketplace like Carvana typically pay 1.5 to 3 percentage points more than buyers who use a credit union-backed EV lender like Tenet.

How Long You Keep It Matters

The five-year comparison above assumes you sell at year five. If you keep the Tesla longer, the economics improve:

Years 6 to 10 are where Teslas pull further ahead. The fuel and maintenance savings continue to accumulate. The financing is paid off. You have no car payment. Insurance stays roughly the same. The total cost per mile drops steadily.

The Tesla ownership case gets stronger the longer you hold the car. The worst financial outcome is buying new, holding for two to three years, and selling during peak depreciation. The best outcome is buying used, holding for six or more years, and letting the fuel and maintenance savings accumulate.

Frequently Asked Questions

Does a Tesla actually save money overall?

On total cost of ownership over five or more years, yes for most buyers who hold the car long-term and charge primarily at home. On a new car vs. a comparably priced new gas car, the first few years are more expensive due to the higher purchase price. Used Tesla versus comparable gas car is often a wash or better from day one.

What about battery replacement costs?

Tesla's battery warranty covers 8 years and 100,000 to 120,000 miles depending on the model, with a 70 percent capacity retention floor. Real-world data shows most Tesla packs retain 85 to 92 percent capacity at 100,000 miles. Battery replacement before warranty expiry is very uncommon.

Is charging at home cheaper than public Supercharging?

Meaningfully so for most drivers. Home charging at $0.17/kWh average is substantially cheaper than Supercharger rates of $0.25 to $0.35/kWh. Drivers who do most charging at home see the full fuel saving reflected in their actual electricity bills.

One Last Thing

Owning a Tesla saves money on fuel and maintenance. It costs more upfront and more to insure. The net picture over five years depends heavily on whether you buy new or used, how you finance it, and how long you keep the car.

Check your Tesla financing rate with Tenet -- two minutes, no credit impact.

Rates as of April 2026, subject to change. APR range 5.25% to 18.99%, regional rates as low as 4.40% through select credit union partners. Minimum loan balance $10,000. Tenet Energy Inc., NMLS #2262929.