You’ve probably heard people say their Tesla is “so much cheaper than gas.” But electricity prices are up, gas prices have drifted down, and new EVs aren’t exactly bargain-bin purchases. So in 2025, is a Tesla actually cheaper than a gas car, or has the math changed?
Quick answer
For many U.S. drivers in 2025, a Tesla can still be cheaper to run day to day than a comparable gas car, especially if you drive a lot and can charge at home. But lower fuel cost doesn’t automatically make total ownership cheaper once you factor in a Tesla’s higher purchase price, depreciation, and insurance. The answer depends on where you live, how much you drive, and whether you buy new or used.
Is a Tesla Cheaper Than Gas in 2025?
2025 Cost Snapshot: Tesla vs Gas (U.S. Averages)
On fuel alone, a Tesla still has a clear edge over a gas car for most U.S. drivers. Electricity prices have climbed into the mid-to-high teens (cents per kWh), but gasoline is still hovering around $3.00–$3.10 per gallon nationally in late 2025. That leaves Teslas with roughly half the cost per mile of a comparable gas car when you primarily charge at home.
Where things get complicated is total cost of ownership. New Teslas are more expensive to buy than many gas sedans and crossovers, they depreciate quickly in the first few years, and insurance can run higher. This is why broad studies of 2025 ownership costs still find that EVs as a group cost more to own new than gas cars, even though they spend less on energy.
Key nuance
Whether a Tesla is cheaper than gas isn’t a yes-or-no, once-and-for-all answer. It depends on your specific situation: miles driven, local electricity rates, access to home charging, and whether you buy new or let someone else take the early depreciation hit and buy used, where marketplaces like Recharged can tilt the math in your favor.
How Much Does It Cost to Charge a Tesla?
To see if a Tesla is cheaper than gas, start with the basics: what does it cost to put “a tank” of electricity in the battery? We’ll use simple, realistic 2025 assumptions and a Tesla Model 3 as an example.
Typical Tesla Charging Costs in 2025 (U.S. Averages)
Approximate energy and cost to add ~250 miles of range to a Tesla Model 3 or Model Y in 2025.
| Charging Type | Assumed Price | Energy Needed (~250 mi) | Estimated Cost |
|---|---|---|---|
| Home, standard rate | $0.17 per kWh | ~65 kWh | ~$11 |
| Home, off-peak EV rate | $0.12 per kWh | ~65 kWh | ~$8 |
| Public Level 2 | $0.25 per kWh | ~65 kWh | ~$16 |
| Tesla Supercharger (pay per kWh) | $0.30–$0.40 per kWh | ~65 kWh | ~$20–$26 |
Actual costs vary by state, utility rate plan, and driving style.
If you can plug in at home most nights and your electricity is around 16.5–18¢/kWh (close to the 2024–2025 U.S. average), you’re looking at roughly $3–$5 in electricity per 100 miles in a Model 3 or Model Y. That’s the baseline many people have in mind when they say, “My Tesla is way cheaper than gas.”
Lower your Tesla charging cost
Ask your utility if it offers a time-of-use or EV-specific plan. Shifting most of your Tesla charging to off‑peak hours can drop your effective rate by several cents per kWh, which adds up quickly if you drive 12,000+ miles per year.
Tesla vs Gas: Cost per Mile
Here’s where we directly tackle the question, “Is a Tesla cheaper than gas?” We’ll compare a Tesla Model 3 or Model Y to a mainstream gas sedan or crossover that gets about 30 mpg in mixed driving.
Real-World Fuel Cost per Mile
Using typical 2025 U.S. prices and efficiency assumptions
Tesla (home charging)
Assumptions:
- Efficiency: ~3.5 mi/kWh (Model 3/Y)
- Home electricity: $0.17/kWh
Math: $0.17 ÷ 3.5 ≈ 4.9¢ per mile.
On a good EV rate (~$0.12/kWh), that drops closer to 3.5¢/mi.
Gas car (30 mpg)
Assumptions:
- Efficiency: 30 mpg
- Gas price: $3.00–$3.10/gal
Math: $3.05 ÷ 30 ≈ 10.2¢ per mile.
If gas spikes back to $4.00/gal, cost jumps to 13.3¢/mi.
At current averages, a home‑charged Tesla is typically 40–70% cheaper per mile than a 30‑mpg gas car on fuel alone. If your local electricity is unusually expensive (think parts of California or the Northeast) or you rely heavily on Superchargers, that advantage narrows, but it usually doesn’t disappear.
Where Tesla can lose its edge
If you pay $0.35–$0.45/kWh for most of your charging, common for pricey public networks or high‑rate states, a Tesla can creep up toward 9–12¢ per mile. At that point you’re close to parity with a 30‑mpg gas car on fuel cost, which weakens the “always cheaper” claim.
Purchase Price and Depreciation
Fuel is only one line on the spreadsheet. Teslas tend to have higher purchase pricessteeper depreciation in the last couple of years as new-EV prices have fallen and competition has grown.
Typical 5‑Year Ownership Snapshot (New Vehicle, 75,000 Miles)
Illustrative numbers based on 2025 averages and industry cost-per-year analyses.
| Cost Category (5 years) | New Tesla (Model 3/Y) | Comparable Gas Vehicle |
|---|---|---|
| Purchase price (before tax) | $42,000 | $32,000 |
| Estimated value loss (depreciation) | $22,000–$24,000 | $16,000–$18,000 |
| Fuel/energy cost | $3,500–$4,500 | $7,500–$9,500 |
| Total (price + fuel + depreciation) | ~$67K–$70K | ~$55K–$60K |
Depreciation figures are directional; actual resale values vary by trim, market, and incentives.
At the new‑car level, the fuel savings from a Tesla often don’t fully offset the higher purchase price and depreciation, especially if you compare it to a sensible, efficient gas sedan or crossover instead of a luxury SUV.
The smartest money in 2025 usually isn’t chasing the latest EV at full sticker price. It’s finding a lightly used example where someone else has already absorbed that early depreciation.
Where Recharged fits in
This is exactly where a used‑EV marketplace like Recharged can change the math. By focusing on fair market pricing and publishing a Recharged Score with verified battery health, you can shop for a Tesla that has already taken the steep first‑owner depreciation hit, while still understanding the state of its most expensive component.
Maintenance and Repairs
On the maintenance side of the ledger, a Tesla usually comes out ahead of a comparable gas vehicle. No oil changes, no timing belts, fewer moving parts in the powertrain, and regenerative braking that reduces wear on brake pads all add up.
Visitors also read...
Maintenance: Tesla vs Gas Over 5 Years
Typical owner experiences when following manufacturer guidelines
Tesla
- No oil changes or spark plugs
- Brake pads often last much longer
- Fewer routine service visits
- Software updates delivered over‑the‑air
Expect to budget for tires, cabin filters, brake fluid, and the occasional service visit.
Gas car
- Regular oil and filter changes
- Transmission fluid and tune‑ups
- Exhaust and emissions components
- More complex drivetrain with more to wear out
Costs vary widely, but long‑term maintenance is almost always higher than a comparable EV.
Realistic 5‑year costs
Industry cost studies often show:
- Tesla/EV: Maintenance & repairs meaningfully lower
- Gas: Hundreds to several thousand more over 5 years
Exact numbers depend on brand reliability and how you drive.
Big-ticket EV repairs still matter
While routine maintenance is cheaper, Teslas aren’t immune to big bills. Out‑of‑warranty battery or drive‑unit repairs can be expensive. That’s why understanding battery health is critical when shopping used, a key reason Recharged includes a Recharged Score battery report with every vehicle.
Insurance, Taxes, and Fees
Insurance is one area where a Tesla can be more expensive than gas. Many insurers price EVs slightly higher because of parts costs, repair complexity, and the high value of the battery pack and electronics. State and local registration fees can also be higher for EVs in some states as they look to replace lost gas‑tax revenue.
- Insurance for Teslas is often higher than for a similarly sized gas sedan, especially in states with pricey labor and parts costs.
- Some states add flat annual EV fees to compensate for lost fuel-tax revenue. This can range from tens to a couple hundred dollars per year.
- Sales tax is based on purchase price, so a more expensive new Tesla usually means higher up‑front taxes than a modest gas car.
Shop around, and consider used
Insurance quotes can vary dramatically between companies. If you’re moving from an older gas car to a newer Tesla, get several quotes before you buy. And remember: a used Tesla with a lower market value often costs less to insure than a brand‑new one.
When Is a Tesla Actually Cheaper Than Gas?
Scenarios where Tesla tends to win
- You drive 12,000–20,000+ miles per year and mostly charge at home.
- Your local electricity is reasonably priced (around or below the national average) and you can use off‑peak rates.
- You buy a used Tesla that has already taken the steepest depreciation hit.
- You plan to keep the car for several years, so fuel and maintenance savings can compound.
Scenarios where Tesla may cost more
- You drive relatively few miles each year (under ~8,000 miles).
- You rely heavily on expensive public fast charging or pay very high residential rates.
- You buy a brand‑new Tesla and compare it to an inexpensive, efficient gas car.
- Your insurance and registration rates for EVs are significantly higher in your state.
Think in “total cost per year,” not just at the pump
A fair comparison asks, “What does this car cost me per year, all‑in?” That includes payments, fuel or electricity, insurance, maintenance, and any extra EV fees. Once you put everything on one sheet, you’ll see clearly whether a Tesla or a gas car fits your budget better.
Used Teslas vs Used Gas Cars
If you’re open to buying used, and many value‑minded shoppers should be, the Tesla vs gas equation gets much more interesting. Used EV prices have cooled, and plenty of 3–6‑year‑old Teslas are now priced near mainstream gas sedans and crossovers.
Why a Used Tesla Can Beat a Used Gas Car
1. Lower up-front price, same fuel savings
You still enjoy EV fuel and maintenance savings, but someone else paid for the most painful depreciation years.
2. Battery health transparency
With Recharged’s <strong>Recharged Score</strong> and battery diagnostics, you can compare used Teslas based on verified battery health, not guesswork.
3. Modern tech and updates
Because Teslas update over the air, a well‑maintained 3‑ or 4‑year‑old car can still feel very current, unlike many used gas cars.
4. Simpler ownership experience
Fewer routine service visits, no oil changes, and easy at‑home charging can make daily life simpler than with an older gas vehicle.
How Recharged helps used‑EV shoppers
Every vehicle on Recharged comes with a Recharged Score Report that covers battery health, fair market pricing, and condition. That makes it much easier to compare a used Tesla to a used gas vehicle on real numbers, not just seller claims.
How to Run Your Own Tesla vs Gas Numbers
No national average matches your situation perfectly. To really know if a Tesla would be cheaper than gas for you, plug your own numbers into a simple framework. Here’s a straightforward way to do it.
5-Step Framework to Compare Tesla vs Gas
1. Estimate your annual miles
Look at your last year of driving or odometer readings. Most Americans are around <strong>12,000 miles per year</strong>, but your reality matters more than the average.
2. Find your actual electricity and gas prices
Check your utility bill for your <strong>cents per kWh</strong> and your local stations or AAA for <strong>$ per gallon</strong>. Use the prices you’re likely to see going forward, not a one‑day sale.
3. Pick realistic efficiency numbers
For a Tesla, use around <strong>3.0–3.8 mi/kWh</strong> depending on model and climate. For a gas car, use a realistic combined mpg (city + highway), not the best case from the sticker.
4. Calculate annual fuel/energy cost
For Tesla: (Annual miles ÷ mi/kWh) × kWh price. For gas: (Annual miles ÷ mpg) × gas price. Compare the totals; the difference is your annual "fuel" savings (or loss).
5. Add payments, insurance, and maintenance
Compare what you’d actually pay per month (or per year) for each vehicle: loan or lease, insurance quotes, estimated maintenance, and any EV fees. This is your true total cost of ownership.
Use a used EV as your benchmark
When you shop on Recharged, you can start with actual vehicles, say a used Tesla Model 3 and a used hybrid or gas sedan at similar prices, and then apply this framework. That’s often more illuminating than comparing a brand‑new Tesla to a much cheaper new gas car you wouldn’t actually want.
FAQ: Is a Tesla Cheaper Than Gas?
Frequently Asked Questions
Bottom Line: Should You Pick Tesla or Gas?
So, is a Tesla cheaper than gas? On energy and maintenance, the answer is usually yes, often by a wide margin if you can charge at home and you drive a typical or above‑average number of miles. But new‑car pricing, depreciation, insurance, and local energy costs mean that a brand‑new Tesla isn’t automatically the budget choice compared with a sensible gas vehicle.
Where Teslas can really shine is in the used market. When you can buy a well‑priced, well‑documented used Tesla, and verify its battery health with tools like the Recharged Score Report, you keep the day‑to‑day savings and sidestep much of the early depreciation. That’s when the numbers often swing clearly in your favor.
If you’re seriously weighing a Tesla against a gas car, put your own mileage, local energy prices, and real insurance quotes into the simple framework in this guide. Then look at actual cars, not hypotheticals. Browse used Teslas on Recharged, compare them to efficient gas models, and choose the one whose total cost of ownership and driving experience make the most sense for you.
