While electric vehicles like Tesla offer lower fuel costs over time, they come with a higher price tag upfront. According to Kelley Blue Book data, new electric cars cost about $59,205 on average in 2025, roughly $10,500 more than gas-powered vehicles at $48,699.
However, the gap narrows when you look at per-mile energy costs. A medium sedan electric vehicle costs $0.913 per mile to operate, compared to $0.664 for a gas version. But in some vehicle categories, the difference shrinks considerably. A medium SUV electric model costs $0.847 per mile versus $0.839 for gas. This minimal gap shows that charging isn’t always dramatically cheaper than filling up with gas.
When comparing per-mile costs, the EV advantage shrinks considerably—especially in medium SUVs, where electric and gas models cost nearly the same.
Annual operating expenses tell a more complex story. A medium sedan EV runs $13,629 yearly while its gas counterpart costs $9,956. A compact SUV electric costs $11,191 annually versus $10,279 for gas. Yet a medium SUV electric costs $12,710 compared to $12,584 for gas, nearly identical figures. Drivers can further refine these calculations by comparing up to eight vehicles simultaneously to determine which option best suits their needs.
Total ownership costs include more than just fuel or electricity. They factor in maintenance, repairs, tires, insurance, registration, and depreciation. EVs require substantially less maintenance because they have fewer moving parts. Gas vehicles need more engine-related service and fluid replacements. This maintenance advantage helps EVs over their lifetime. Regenerative braking reduces brake wear significantly, contributing to long-term savings. EV maintenance costs are approximately 50% lower than gas vehicles, amplifying savings over time. Some regions may experience regional access restrictions to certain EV incentive programs based on geographical location. Tesla owners specifically spend roughly $4,287 on maintenance and repairs over 10 years, saving nearly $7,700 compared to luxury rivals.
Where you live dramatically affects costs. Electricity rates vary by region, as do gasoline prices. Some states offer incentives that reduce EV purchase prices. Home charging capability also makes a major difference since it’s cheaper than public charging stations.
Drivers typically reach a break-even point after five or more years of ownership. Those driving more than the national average of 12,000 to 15,000 miles annually get there faster. Federal and state incentives accelerate this timeline considerably.
The bottom line remains unclear for individual drivers. While Tesla vehicles offer lower long-term fuel costs, buyers must consider the higher upfront price, their driving patterns, local energy rates, and available incentives before deciding whether charging really saves money compared to gas.