Key Takeaways
1. Tesla vehicles have lower upkeep and repair costs in the first five years compared to other manufacturers due to being fully electric.
2. Over a longer ownership period, Teslas do not maintain a cost advantage against popular gasoline SUVs like the Honda CR-V and Toyota RAV4.
3. The total cost of ownership per mile for a Tesla Model Y is comparable to that of the Honda CR-V and slightly higher than the Toyota RAV4.
4. Tesla estimates similar depreciation and insurance rates for the Model Y and Honda CR-V, but electric vehicles generally have higher insurance costs and quicker depreciation.
5. Buyers are more attracted to the Model Y for its advanced technology and environmental benefits rather than for financial savings.
As a study conducted last year revealed, Tesla vehicles indeed have lower upkeep and repair expenses for the first five years compared to other manufacturers, primarily due to the fact that it exclusively produces electric cars.
Long-Term Costs
Nonetheless, when considering the total cost of owning a vehicle over a longer period, Teslas don’t maintain that advantage. Tesla’s own analysis indicates that a buyer of the Model Y won’t see any financial benefits compared to two of the most favored gasoline SUVs, the Honda CR-V and the Toyota RAV4, until later on. This is surprising, given that the Model Y doesn’t require oil changes, and its brake maintenance mainly involves just adding flashy red caliper covers.
Cost Comparison
In Tesla’s freshly released 2025 environmental impact report, the total cost of ownership for each mile driven in a Model Y is quoted at $0.74, which is the same as the Honda CR-V. The Toyota RAV4 has a slightly elevated cost at $0.76 per mile. It’s worth noting that Tesla used the more affordable and less energy-consuming RWD Model Y for this comparison.
The overall expenses for operating a Model Y include the depreciation rate over five years or 60,000 miles, insurance costs, maintenance or repair expenses, and finally, fuel costs, whether for electric charging or gasoline. Here, things get a bit unclear, as it’s uncertain whether Tesla considered home charging rates, Supercharger costs, or a combination of both in its comparison.
Depreciation and Insurance Rates
Moreover, as depicted in the chart below, Tesla estimates similar depreciation and insurance rates for the Model Y and Honda CR-V. However, electric vehicles typically incur higher insurance costs and experience quicker depreciation rates. The Model Y stands out as Tesla’s top-selling model, and its depreciation initially compares favorably against Internal Combustion Engine (ICE) vehicles, particularly when looked at next to high-maintenance luxury brands like BMW, whose X3 SUV has an astonishing operating cost of $1.19 per mile.
Even if all of Tesla’s figures are accurate and don’t present an overly optimistic view of EV ownership in terms of depreciation, fuel, or insurance, the primary advantage of owning one of its cars doesn’t appear to be financial.
In summary, it seems that buyers are more inclined to choose the Model Y for its advanced technological features like self-driving capabilities or for environmental reasons, rather than considering the total cost of ownership, especially when compared to popular gas-powered options from manufacturers like Toyota or Honda.
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