20 Hidden Costs of Owning a Tesla

When it comes to the futuristic allure of these high-tech electric vehicles, often masked, or at least not fully understood prior to purchase, are the various hidden costs of owning a Tesla. Let’s take a look at the often overlooked expenses that come with owning a Tesla, allowing you to make a more informed decision should you find yourself in the market.

If you are a fan of financial independence and learning how to buy a car, especially if considering a new expensive model, you understand that due diligence needs to be exercised.

I do not currently own a Tesla. A few of my friends do and another was considering buying a new model. This got me thinking about how much it truly costs to own one. Here are my findings.

Unforeseen Tesla Costs: The Comprehensive Breakdown

1. Initial Acquisition: Higher Than Average Purchase Price

Tesla’s innovation doesn’t come cheap. Compared to conventional automobiles, Tesla vehicles typically come with a significantly higher purchase price. For instance, the Tesla Model 3, one of Tesla’s most affordable options, starts at $38,000—considerably higher than the average price for an entry-level gasoline vehicle.

2. The Electric Factor: Home Charging Installation

An essential but often disregarded aspect of owning a Tesla is the home charging station. While some homes may have the necessary outlets, many require a professional installation of a dedicated Tesla charger. These installations can cost anywhere from $500 to $1,200, depending on your home’s electrical setup.

3. Energy Consumption: Charging Costs

Charging a Tesla isn’t as simple as plugging it into your home outlet. The cost of electricity varies by location, meaning the expense of charging your Tesla will fluctuate. Depending on local rates, the cost per charge can range from $10 to $20.

4. Insurance: Premiums Above the Standard

Tesla’s advanced technology and higher-than-average repair costs often result in increased insurance premiums. Depending on your location, driving record, and specific model, Tesla insurance can be significantly higher than that for traditional vehicles.

5. Maintenance: The Hidden Aspect of EV Ownership

While Tesla vehicles generally require less routine maintenance than their internal combustion counterparts, certain unique aspects need upkeep. For instance, the complex electrical systems and battery health can require costly checkups or even replacements, reaching into the thousands.

6. Dependence on the Supercharger Network: Traveling Costs

Tesla’s Supercharger network provides a necessary resource for Tesla drivers on the go. However, unlike home charging, Supercharger stations come with their own costs, around $0.25 per kWh. For a full charge, you could be looking at an additional $15 to $30.

7. Tires: High-Performance Equals High Price

Tesla vehicles, known for their acceleration and speed, need performance-grade tires that can withstand these capabilities. These high-performance tires often wear faster and cost more to replace than regular ones, leading to an increase in upkeep costs.

A quick search on the Discount Tire website shows new tires for a 2020 Tesla Model Y can range from just over $200 per tire to over $300 per tire, not including installation.

8. Luxury Repairs: Elevated Body Work Expenses

Aesthetically, Tesla vehicles are luxurious. However, body repairs for Tesla cars often cost more than traditional vehicles due to their unique aluminum structure and the limited number of Tesla-approved body shops.

9. Connectivity: Premium Internet Comes at a Premium Cost

Tesla offers a premium connectivity package at $9.99/month, providing features such as live traffic visualization, satellite-view maps, and music streaming. Over the course of ownership, this additional cost can add up.

10. Resale Value: The Uncertainty of Future Market

While Tesla vehicles currently hold their value well, the volatility of the electric vehicle market can influence resale values significantly. Thus, potential depreciation could be a hidden cost.

11. Accessories: Added Comfort Comes With Added Cost

Tesla offers a variety of accessories that enhance the ownership experience. Whether it’s a home charging adapter, all-weather floor mats, or a roof rack, these accessories contribute to the total cost of Tesla ownership.

12. Upgrades: Software Updates Aren’t Always Free

Occasionally, Tesla offers substantial software upgrades for things like basic and enhanced Autopilot, requiring a one-time payment and or ongoing subscription that can reach thousands of dollars. While not mandatory, these updates are often tempting for the tech-savvy Tesla owner.

These can be some of the most significant hidden costs of owning a Tesla.

For example, all new Tesla cars get Tesla Autopilot, designed to be used with full driver supervision, for free. If more features are desired, you can pay $6,000 for Tesla Enhanced Autopilot, allowing the car to park on its own, auto lane changing, and a cool feature that allows the car to drive to you in a parking lot. And for even more features you can pay $15,000 up front for Tesla Full Self-Driving (FSD) or by paying a subscription price of up to $199.00 per month.

Additionally, the Infotainment Upgrade for some models built before March 2018 are available for a not insignificant amount of $1,750 to $2,250.

13. The Cost of Speed: Paying for Performance

Tesla offers performance upgrades that allow your vehicle to reach faster acceleration times. These speed boosts typically come with a significant cost, adding to the total expenses of owning a Tesla.

14. Towing: Not Your Average Vehicle Recovery

Due to the unique nature of Tesla’s all-electric vehicles, not all towing companies are equipped to handle them. Towing expenses may be higher due to the need for specialized services.

15. State Taxes and Fees: The Unseen Regulatory Costs

Depending on your location, state taxes, and fees for electric vehicles can add up. Some states levy additional charges on EVs as they don’t contribute to gas taxes used for road maintenance.

A few days ago I went into a DMV kiosk store in San Diego to renew my 2016 Toyota Avalon registration. The man at the desk helping me, without any prompting from me, said that if I owned a Tesla, my annual registration would cost about $1,000 per year. He had many Tesla owners surprised by this amount.

16. Replacement Parts: The Premium Price of Innovation

When it comes to replacement parts, Tesla owners should be prepared for a higher-than-average bill. Whether it’s unique sensors or electric vehicle specific components, these parts typically come with a premium price tag.

17. Battery Replacement: The Inevitable Wear and Tear

Eventually, the battery of a Tesla will require replacement. Although Tesla offers an 8-year warranty on their batteries, replacements outside of warranty can cost between $3,000 to $7,000.

18. Autopilot Calibration: Safety and Precision at a Cost

If your Tesla’s windshield is replaced, the Autopilot system will need recalibration. This process can cost several hundreds of dollars, increasing the overall cost of what would usually be a straightforward windshield replacement.

19. Early Adoption Premium: The Cost of Being Cutting-Edge

Tesla owners are essentially early adopters of a disruptive technology. As with any new tech, there are costs associated with being one of the first to own it, from dealing with initial glitches to a lack of infrastructure support.

20. Time: The Hidden Cost

As with any vehicle, time is a hidden cost of ownership. However, with Tesla, this may manifest in longer waits for repairs due to the limited number of specialized shops or charging times when on a road trip.

The Final Word on The Hidden Costs of Owning a Tesla

Undoubtedly, the allure of Tesla vehicles lies in their innovative technology, thrilling performance, and futuristic appeal. However, as an astute potential owner, it’s paramount to scrutinize the concealed costs associated with Tesla ownership. With a detailed comprehension of these expenses, you’re empowered to make a decision that aligns not only with your financial capabilities but also with your overall financial goals and independence journey.

More than just the initial purchase, it’s essential to consider how these extra costs harmonize with your personal values. Are you prioritizing environmental stewardship? Are you passionate about supporting groundbreaking technology? If so, these values may justify the additional expenditures associated with a Tesla.

However, it’s equally crucial to assess how these costs fit into your broader financial independence journey. Are the additional expenses going to derail your long-term savings goals or delay your retirement plans? Is the premium price worth potentially compromising other financial aspirations?

Before being swept away by the excitement of owning a Tesla, take a moment to reflect on these questions. While the technological prowess of a Tesla is undeniably appealing, remember that ownership requires a dedication beyond the ordinary. It’s not just a car purchase – it’s a financial commitment that should align with your lifestyle, values, and financial roadmap.

It would be irresponsible to blindly purchase a new model without being aware of the hidden costs of owning a Tesla.