As Tesla rolls out its ‘affordable’ model, buyers should consider these potential expenses — and savings.
At long last, the $35,000 Tesla Model 3 is here. Yet, for unsuspecting consumers, the electric vehicle could prove to be a budget buster even with the lower price tag.
Tesla said back in 2016 that 373,000 people had put down $1,000 deposits to join the waiting list for a Model 3, and CEO Elon Musk said in 2017 “there are more and more every week.” He initially expected that people who ordered the cars then would get them starting in 2018. According to the cost calculator available from the independent website Teslanomics, consumers would need to pay roughly $712.80 in charging costs annually for the lowest-cost Model 3, assuming a daily commute of 40 miles. Fueling a gas-powered car that gets 30 miles to the gallon would cost you significantly more at $1,195 a year.
Maintenance costs for a Tesla Model S over five years were at most $2,800 as of 2017 while a Mercedes-Benz S-Class racks up $18,000 in maintenance bills and the BMW 7 Series costs about $17,000 over the same period, according to an analysis by a self-described Tesla enthusiast and “data geek.” A Tesla spokeswoman declined to comment on that specific point, but noted that Musk said on a 2017 first-quarter earnings call that the Model 3 was intentionally designed without “bells and whistles and special features.” Tesla wanted to try a different strategy than it did with the features-laden Model X, Musk said on the call. “We’ve designed it to be easy to make,” Musk said. “We’ve got I think a much better supply chain in place...We didn’t have that for the Model X or the S.
Electric cars typically depreciate faster than any other type of car, but Teslas are expected to buck that trend, according to the car value research company Kelley Blue Book.
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