Owning a Tesla Model 3 is now more cost-effective than nearly any other vehicle in the U.S., according to a new study by Self Financial. The electric sedan boasts the lowest ownership costs among the 50 best-selling cars, reinforcing Tesla’s financial edge over traditional gasoline-powered models.
EVs Lead the Charge in affordability
The Model 3 leads the rankings, with the Model Y also securing a top-10 spot, placing it among fuel-efficient favorites like the Honda Civic and Toyota Corolla. The study found that the Model 3’s annual operating costs are just over $5,000—$1,400 below the industry average.
The biggest savings come from fuel and maintenance. Charging a Model 3 costs just $636 per year, significantly lower than the $2,246 average for fuel and electricity. Tesla owners also reported spending 30% less on maintenance, with one driver noting that after 54,000 miles, their only expenses were a single set of tires, wiper blades, and a cabin air filter.
Fuel-powered vehicles losing ground
While the Hyundai Elantra closely followed the Model 3 in affordability, beating it by just $43 in annual costs due to lower taxes and fees, the landscape is shifting. As EV prices continue to fall, gas-powered staples like the Civic and Corolla may struggle to compete in long-term affordability.
Many Tesla owners say they’ll never go back to internal combustion engines. With lower ownership costs, environmental benefits, and government incentives, EVs are gaining an even stronger foothold in the market.
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