Not So Fast, Tesla.
So, you‘ve cut your energy consumption where you can. You’ve got LED lightbulbs and energy-saving appliances. Having a lean, green, non-CO2 producing car sounds like it might be the next step to save you some money.
Since the 1950s, the interstate system that connects major cities has become the primary form of ground transportation for people and goods in the US. Thus, we are a largely car-dependent society now. As we face problems like climate change and limited oil resources, we’re having to rethink what the typical highway-worthy vehicle looks like and what fuels it uses.
Electric vehicles (EVs) are often the first alternative to gas-powered vehicles and Tesla is usually the first EV brand to come to mind. Vehicles like the Nissan Leaf are considered toys compared to the almighty Tesla. But let’s forget the EV popularity contest for a moment.
EVs look great on paper, but how practical are they in the real world? According to Tesla, 99% of the US population lives within 150 miles of a supercharger. Sounds like they’re practical for almost everyone. But, with ranges typically below 300 miles for most Teslas, a round trip of this distance to charge becomes not only inconvenient but very illogical. But you might say, “You can charge your Tesla at home!” This is true, but what about those people that don’t have a garage or other means to charge their Tesla while they’re sleeping? These people primarily live in apartments in larger metro areas, where EVs could potentially be a very enticing option.
This infrastructure leaves those in rural areas out as well. Those in rural areas tend to be the most car-dependent and could reap significant benefits from owning a Tesla. Rural dwellers likely have the ability to charge a Tesla at home, but access to maintenance and repair facilities would quickly become an issue as Tesla only allows repairs to happen at its own facilities (which are located in metro areas) and approved third-party shops (which have to purchase expensive equipment to become certified).
Therefore, Tesla’s target market is wealthy, suburban households that have access to the Tesla infrastructure but also have a garage or other means of charging their Tesla. Their prices reflect this.
The average used Toyota currently goes for $17,950 according to CarGurus. The average used Tesla? $53,189. Granted, these prices will come down in the next few years as the Model 3 starts to hit the streets. For those in the market for an eco-friendly ride this year, what do you do?
The EPA calculates a useful metric that is easy for all of us to wrap our minds around: the cost to drive 25 miles. It costs about $1.03 to drive 25 miles in an average new Tesla. Using the most recent release of the EPA fuel economy dataset, we can harness this metric at scale. I was determined to find vehicles that had many of the same benefits of a Tesla, but at a fraction of the cost.
Above, we can see that some hybrids actually come quite close to the same cost as an average Tesla when we’re concerned with fuel costs. The below chart paints very different picture, however. The Hyundai Ioniq Blue is the cheapest trim level of the vehicle and is the most fuel-efficient hybrid available currently. In comparison, the Tesla costs about $14,000 more and has only marginally cheaper fuel costs.
Some quick math indicates it would take 437.5 years for the Tesla to make up for it’s more expensive MSRP at current fuel prices compared to the Hyundai Ioniq Blue. This is because, on average, a Tesla only costs about $32 less annually to fuel than the Hyundai Ioniq Blue. Even with the more expensive Ioniq trim or the Prius Eco, it would take about 137 years for the Tesla to justify it’s MSRP difference.
I’m here to be the bearer of good news: it is possible to save some money on fuel and do the environment a favor without paying a premium price for it. Remember, neither of the Hyundai models nor the Prius need to be plugged in at night to realize their full efficiency. You can drive them just like you would any other car while still knowing that access to a repair shop is easier (and cheaper) and you won’t have to worry about range anxiety.
