Tesla delivered 499,550 vehicles in 2020, and the brand has consistently increased sales figures worldwide over the past decade1. Put simply, Tesla isn’t going anywhere anytime soon.

For drivers, Tesla cars and pickup trucks offer a luxurious ride with space-age features, but those features come at a premium. The Model 3 is the least expensive Tesla and retails at just under $40,000 (incentives can push the price under $35,000)

Many models have been eligible for tax rebates and other purchase perks, which can ease the sticker shock. Still, there’s no getting around the fact that Teslas are expensive. The obvious question for drivers: Are Teslas worth the price? To find out, we looked into the real costs of Tesla ownership.

How Much Can a Tesla Save in Gas?

Tesla is a leader in the all-electric market, and drivers can save a considerable sum by switching to an environmentally friendly electric vehicle (EV). Of course, your savings will vary depending on where you live and how much you drive. Here are a few facts to keep in mind:

• An average American drives 13,500 per year. At an average cost of $2.60 per gallon3 and an average fuel economy of 24.9 miles per gallon (MPG), the average annual cost of gas is around $1,409 per vehicle.

• On average, charging a Tesla Model X costs around $15.29. A fully charged Model X Long Range has a range of 360 miles.

• If you live in Illinois and drive 13,000 miles per year, switching to a Tesla Model S 110D would save you about $922 per year5. A California driver would save about $1,143 per year.

• However, switching to another EV might yield the same savings at the pump — often at a lower overall cost. The electric versions of the BMW i3, Ford Focus, and Hyundai Kona offer a similar mile-per-gallon-electric (MPGe).

To figure your exact savings, you’ll need to do some math based on your driving habits and local fuel prices. With that said, saving on fuel is a major reason to consider an electric vehicle.

How Much Does a Tesla Cost to Insure?

Teslas are luxury vehicles, and insurance companies charge a premium for expensive cars. Most Tesla drivers will want full coverage — including comprehensive and collision coverage — regardless of whether they’re financing.

• The average cost of car insurance in the United States is around $2,400 per year ($200 per month)

• On average, Tesla vehicles cost around $4,500 per year to insure, but pricing varies greatly depending on driver location, accident history, and other factors.

• Tesla also offers its own insurance program for drives in California.

• Unlike traditional insurance coverage, Tesla’s program collects information about driver behavior through the vehicle’s internet connection. Some California drivers may save significantly (but others might get penalized).

As with other types of vehicles — including all other EVs — Tesla owners can save on insurance by shopping around. Comparing policies from several different insurance companies can yield enormous savings, particularly for luxury vehicles.

Are Tesla Vehicles Expensive to Maintain?

Like other EVs, Tesla vehicles cut out some of the most common costs of car maintenance. Teslas have a single-speed transmission8, and while the Model 3 is capable of going from 0 to 60 miles per hour in 3.2 seconds, it doesn’t have as many mechanical components as a typical car with an internal combustion engine.

• Tesla drivers don’t need to schedule oil changes, spark plug replacements, emission checks, or fuel filter exchanges.

• Tesla’s regenerative braking technology reduces wear on brakes, reducing the need for brake pad replacement.9 Tesla estimates that their vehicles' brake pads can last more than 100,000 miles.

• Of course, all mechanical vehicles require occasional maintenance. You’ll still need to rotate tires, test the brake fluid, and replace air filters

• Teslas are specialized, so you’ll need to find a mechanic who has experience with electric vehicles

• Expected annual maintenance expenses for Teslas hovers around $200 per year, though drivers in cold climates may pay a bit more for winter brake checks.

The downside: If something’s seriously wrong with your electric vehicle, you can expect a high repair bill. You may want to consider paying for an extended warranty through Tesla or a third-party provider.

Verdict: Tesla Vehicles Are Worth the Price — For Some Drivers

Generally speaking, Tesla cars are more expensive than other electric vehicles, but the brand’s popular for a reason: Their vehicles have an incredible array of next-generation features, and they’re seriously fun to drive. If you invest in a Tesla, you’ll get some of that money back by saving on fuel and maintenance, but auto insurance can pump up the cost of ownership.

Some other important notes

• Electric vehicles may be eligible for state, local, and federal tax incentives. Most rebates must be claimed after purchase, but some can reduce the cost of the purchase.

• Some states and cities also offer additional perks for EV drivers. Depending on where you live, you may be able to drive in carpool lanes or get free municipal parking.

• Many utility companies offer discounted rates for electric vehicle owners. Check with your utility provider to find out whether you can take advantage of these plans

Finally, if you’re considering a Tesla, start comparing insurance quotes before you buy. A new electric vehicle is a major purchase, and savvy drivers can keep their expenses in check by understanding their options — and by taking advantage of the competitive insurance market to reduce one of the most significant costs of Tesla ownership.