Note: This article has been updated to reflect the latest prices as of January 2023.
Tesla has single-handedly proven that electric cars can be exciting, desirable, and affordable.
If you’re looking to buy a Tesla right now, there’s good news for you: you can now claim a $7,500 tax credit on certain models.
Read on to find out what it costs to buy, customize, charge, and maintain a Tesla in 2023.
Tesla is unique – and not just because of their branding and design. When you buy a Tesla, regardless of the model or trim level, you work directly with Tesla, not a third-party sales force as you would with traditional car brands
In fact, you can buy a Tesla remotely from the comfort of your home. Just go to their website, customize the vehicle of your choice, place your order, and wait for it to be delivered. There are no haggling, pushy salesmen, or dealership gimmicks.
While Tesla doesn't have dealerships, they do have showrooms for those seeking an "in-store" experience. There, you can go for a test drive, speak with a specialist, or customize your car. But even at the showroom, you still place the order using the official Tesla website.
The website will show you two different prices listed for each car:
The purchase price is the real sticker price of the car. It's also the price that we've used when discussing Tesla prices throughout this blog.
The potential savings price, which is shown to website users by default, is your estimated cost of ownership after EV incentives and potential gas savings. We're not fans of prices being presented this way as it doesn't reflect the amount you will actually have to pay to buy the car. Plus, incentive eligibility and gas savings can vary significantly from person to person.
A Tesla can cost as little as $43,490 or as much as $144,990, it all depends on which Tesla model you choose, and what features you want to add to the vehicle.
We've created a handy table to show you the price range for every Tesla model and version. Prices for Teslas are the same across the country, so the price of a Model 3 in New York will be the same as one in Beverly Hills. But remember the final price will depend on how you customize your ride.
All prices shown here are the final retail prices, straight from the Tesla website.
| Model and version | Max range* | Base price | Fully loaded** |
|---|---|---|---|
| Model 3 Rear-Wheel Drive ($7,500 tax credit applies) | 272 miles | $43,490 | $64,630 |
| Model 3 Long Range | Unavailable | Unavailable | Unavailable |
| Model 3 Performance | 315 miles | $53,990 | $73,630 |
| Model Y Long Range | 330 miles | $54,990 | $81,630 |
| Model Y Performance | 303 miles | $57,990 | $78,630 |
| Model S | 405 miles | $94,990 | $120,630 |
| Model S Plaid | 396 miles | $114,990 | $140,630 |
| Model X | 351 miles | $109,990 | $140,130 |
| Model X Plaid | 333 miles | $119,990 | $144,990 |
*The max range achievable using the most fuel-efficient options for each variant. All estimates provided by Tesla.
**Price after adding the most expensive customizations and add-ons offered, including Full Self Driving Capability. Includes destination and order fees.
The most popular incentive for buying an electric vehicle is the federal EV incentive, which can be worth up to $7,500. In total, five Tesla versions qualify for the EV tax credit:
| Model | Incentive value |
| Model 3 Performance | $7,500 |
| Model 3 Standard Range Rear Wheel Drive | $3,750 |
| Model Y All-Wheel Drive | $7,500 |
| Model Y Long Range All-Wheel Drive | $7,500 |
| Model Y Performance | $7,500 |
To qualify, the final assembly of the car must take place in North America. The tax credit consists of two parts: $3,750 if the battery meets critical mineral requirements and $3,750 if the battery meets assembly and manufacturing requirements. There are also MSRP limits, with SUVs, trucks, and vans not able to exceed $80,000, while all other vehicles cannot exceed $55,000.
You also cannot exceed the incentive’s income limit threshold of $300,000 for joint filers, $225,000 for a head of household, and $150,000 for single filers.
The Model 3 is Tesla’s cheapest vehicle. It will set you back between $46,990 and $77,990, depending on trims and customizations. Image courtesy of Tesla Inc.
The 2023 Tesla Model 3 is the cheapest Tesla car currently offered. The base rear-wheel drive (RWD) trim has an official starting price of $43,490, and $53,990 for the Performance model. Both the standard and Performance models are eligible for the federal EV tax credit, but the exact amount will vary.
There is a Long Range trim for the Model 3, however, demand was so high that it sold out in 2022. Tesla is expected to open orders for the Model 3 Long Range sometime in 2023.
Tesla gives you the ability to customize your Model 3, which can increase how much you spend. The following table outlines the customization options available for both the standard Model 3 and the Performance trims:
| Feature | Cost |
| Midnight Silver paint | $1,000 |
| Deep Blue Metalic paint | $1,000 |
| Solid Black paint | $1,500 |
| Red Multi-Coat paint | $2,000 |
| 19” Sport Wheels* | $1,500 |
| Black and White Interior | $1,000 |
| Enhanced Autopilot | $6,000 |
| Full Self Driving | $15,000 |
*Not available for the Model 3 Performance
If you get all of the most expensive add-ons for your standard Model 3, you’ll have to spend $64,630. The Model 3 Performance would cost $73,630.
Add-ons and the EV tax credit: Technically, getting all the most expensive add-ons would push you over the $55,000 MSRP eligibility requirement for the federal EV tax credit. But according to Tesla’s website, software add-ons like Enhanced Autopilot and Full Self Driving are excluded. This means that the standard Model 3 would still quality for the tax credit, even with all the bells and whistles. The Model 3 Performance, on the other hand, would be disqualified.
Need more space than a Model 3 but don’t have the budget for a Model X? The crossover Model Y might be what you’re looking for. Image courtesy of Tesla Inc.
The Tesla Model Y has a starting price of $54,990 for the Long Range trim. The sporty, higher-end Performance variant starts at $57,990. Both Model Y trims qualify for the EV tax credit.
The car drives a lot like the Model 3, but gives you more room for both passengers and cargo. Also, like the Model 3, the Model Y can be customized to your liking.
| Feature | Cost |
| Midnight Silver Metallic paint | $1,000 |
| Deep Blue Metallic paint | $1,000 |
| Solid Black paint | $1,500 |
| Red Multi-Coat paint | $2,000 |
| 20” Induction Wheels* | $2,000 |
| Tow Hitch | $1,000 |
| Black and White interior | $1,000 |
| 7 Seats* | $4,000 |
| Enhanced Autopilot | $6,000 |
| Full Self-Driving Capability | $15,000 |
*Not available for the Model Y Performance
The IRS classifies the Model Y as an SUV, so as long as the MSRP does not exceed $80,000, both trims are eligible for the tax credit even when you get all of the most expensive add-ons.
The Model S starts at $94,990 for the Long Range variant, and $114,990 for the Plaid. Image courtesy of Tesla Inc.
The Model S is Tesla’s premium offering, and it comes with the longest range of all the Tesla vehicles. The Tesla Model S is currently available at a starting price of $94,990 for the standard dual-motor variant.
If you’re looking for Tesla’s fastest vehicle, it’s the three-motor Model S Plaid variant. It can take you from 0 to 60 mph in just 1.99 seconds - making it the quickest mass-market car in existence - and has a high speed of 200 mph. This variant has a starting price of $114,990.
Needless to say, the Model S exceeds the MSRP limits for the tax credit, so don’t expect a tax break from the federal government for this EV.
| Feature | Cost |
| Midnight Silver Metallic paint | $1,500 |
| Deep Blue Metallic paint | $1,500 |
| Solid Black paint | $1,500 |
| Red Multi-Coat paint | $2,500 |
| 21” Arachnid Wheels | $4,500 |
| Black and White interior | $2,000 |
| Cream interior | $2,000 |
| Enhanced Autopilot | $6,000 |
| Full Self-Driving Capability | $15,000 |
The Model X has seen a recent design refresh as well as multiple price hikes. The Model X now retails for $109,990, while the Model X Plaid starts at $119,990. Image courtesy of Tesla Inc.
The Model X is Tesla’s larger SUV option, known for its distinctive ‘falcon-wing’ doors. At $109,990, the 2023 Tesla Model X standard variant has a higher base price than any other base model Tesla. The faster, more luxurious Model X Plaid variant starts at $119,990. Much like the Model S, the Model X is too expensive to receive the EV tax credit.
| Feature | Cost |
| Midnight Silver Metallic paint | $1,500 |
| Deep Blue Metallic paint | $1,500 |
| Solid Black paint | $1,500 |
| Red Multi-Coat paint | $2,500 |
| 22” Turbine Wheels | $5,500 |
| Black and White interior | $2,000 |
| Cream interior | $2,000 |
| 6 Seats* | $6,500 |
| 7 Seats* | $3,500 |
| Enhanced Autopilot | $6,000 |
| Full Self-Driving Capability | $15,000 |
Some states provide sizable cash incentives and tax rebates on EV purchases.
Connecticut offers up to $9,500 on EV purchases through its CHEAPR initiative, while Colorado offers a $2,500 state tax credit if you buy an EV with cash (or $1,500 if you lease one).
Other states offer associated benefits like reduced or free tolls, and unlimited access to HOV lanes.
Yes, as with the purchase of any new vehicle, there are several additional expenses you should account for when purchasing a Tesla.
The good news is that Tesla has stopped charging two large fees: the refundable $1,000 reservation fee and the $2,500 order deposit; both were dropped in 2019.
Yes, you will almost certainly save on fuel costs by switching from a gasoline-powered car to a Tesla (or any EV for that matter), especially when gas prices are high.
Tesla provides gas savings estimates for each model on its website. For the Model 3, we were shown an estimated gas savings of $6,600 over six years, or $1,100 annually. For Tesla’s larger SUV, the Model X, the gas savings were even higher: $8,400 over six years.
Tesla’s estimates are based on assumptions about your electricity costs and annual driving distance, so they may not be very accurate for you. You can see a more useful figure by adjusting these inputs on Tesla's estimator. To do this, simply click on the ‘Customize’ button on Tesla’s order pages. When we adjusted the estimator’s electricity price input - from 14 cents per kilowatt-hour (kWh) to 23 cents per kWh (the typical cost in California) - we saw the six-year gas savings on a Model 3 fall from $6,600 to just $4,800.
Tesla's estimator doesn’t allow you to account for factors like your driving style and preferred charging method. To adjust for a greater number of variables and see a more accurate savings estimate check out the calculators offered by Teslanomics.
If you’re charging a Tesla at home using utility power, it will cost you between $7 and $16 to charge a Tesla from a zero charge.
Unless you drive more than 50 miles per day, you won’t actually need to charge your Tesla all that much. Image courtesy of Tesla Inc.
Another way to look at this cost is by the cost per mile metric. We analyzed the data and found that it cost between 2.9 and 4.7 cents per mile to charge a Tesla, depending on the make and model.
Gas-powered vehicles, on the other hand, cost about 20 cents per mile to drive. It's substantially cheaper to drive an EV, even if the upfront cost is a bit higher.
And if you install solar panels on your home and use the power generated to charge your Tesla, the charging cost will be even lower.
Check out our detailed blog on the cost of charging a Tesla.
Tesla vehicles have lower maintenance costs than conventional gas-powered cars. The reason for this is simple: EVs have fewer moving parts than gas engines, so there is less need for service and repairs.
In fact, Tesla updated its guidance a couple of years ago to let drivers know that annual servicing isn’t necessary. The company now recommends service only when a part is scheduled for checking or replacement.
Many Tesla owners say their only out-of-pocket maintenance costs within the first two years of ownership were related to their tires. This is mostly just periodic tire rotation, but some drivers said they needed to replace their tires early due to excessive wear and tear brought on by aggressive driving.
Projected five-year maintenance costs for a Model 3 come to about $980 total, assuming you change the parts yourself using Tesla’s DIY guides.
If you’re more interested in one of Tesla’s upcoming offerings, here’s a quick look at what you can expect to pay for each model, and when they're scheduled to be released.
| Model | Base price | Max price | Expected launch |
|---|---|---|---|
| CyberTruck | $39,900 | $69,900+ | Late 2023 |
| Roadster | $200,000 | $250,000 | 2023 |
| Model 2 | $25,000 | N/A | 2025 |
The prices and release dates mentioned above are based on the latest information provided by Tesla. We recommend taking them with a grain of salt; after all, Tesla is notorious for repeated production delays and price changes.
The Tesla Cybertruck is expected to enter production at Tesla’s Giga Texas factory in 2023, with initial deliveries likely to start before the end of the year.
Analysts believe that Tesla will focus on releasing the tri-motor variant first – the most powerful and expensive trim – with the cheaper dual and single-motor versions to follow sometime in 2024.
There's a lot less clarity on the actual cost of the Cybertruck on release. Tesla removed all mention of Cybertruck prices from their website back in October 2021.
You can currently book the Tesla Cybertruck by paying just $100 as a deposit.
Tesla and its CEO Elon Musk faced embarrassment when the Tesla Cybertruck’s 'armor glass' windows shattered during the vehicle’s unveiling. Despite the hiccup, over a million Americans paid the $100 deposit to book one. Image credit: Sky News
The reveal of the retro-futuristic Tesla Cybertruck back in November 2019 definitely had people talking. While people have mixed feelings about its looks, all agreed that if Tesla does actually deliver on the Tesla Cybertruck at competitive prices, this pickup could pick up massive market share.
Tesla promises the new Tesla Roadster will be the fastest street-legal car yet, with a top speed of 250 mph and acceleration that will take the car from 0 to 60 mph in just 1.9 seconds.
But all that speed won’t come cheap. The first 1,000 Tesla Roadsters produced will be sold as the Founder Series for $250,000 each, while all Roadsters after that will retail for $200,000.
The new Tesla Roadster will be a major refresh of the first-generation Tesla Roadster that was available from 2008 to 2012. While not many were sold, the original Roadster changed the automotive scene by proving that an electric car could deliver amazing performance and provide a decent driving range.
In September 2020, Elon Musk teased the upcoming release of a new mass-market vehicle that will cost just $25,000.
This caused feverish speculation among Tesla watchers, with some suggesting the imminent release of a Tesla hatchback named the Model 2. However, these rumors were shut down by Musk in January 2022, when he announced that development work was on hold, and offered no indication of when it might resume. It appears highly unlikely that we’ll see this car any time before 2025.
While Teslas aren’t the cheapest cars around, they offer plenty of bang for your buck.
They are emissions-free, boast excellent safety ratings, offer fantastic driving performance, and have long driving ranges. They also come with low running costs, especially when compared to conventional gas-powered vehicles.
Furthermore, owning Tesla allows you to use a home solar panel system as a fuel source. Solar panels generate power that is both clean and cheap, so using them to charge your vehicle will amplify the already great environmental and cost benefits of Tesla ownership.
If you’re thinking of buying a Tesla, definitely consider pairing it with a home solar panel installation.
This content was originally published here.
