Forums

Cost of ownership more than a ICE?

Cost of ownership more than a ICE?

In today's Investors Business:
Meanwhile, Langan estimates that the Model 3’s 10-year cost of ownership will be about $21,000 more than that of a comparable internal-combustion vehicle.

He does not say how he came up with that.
I'm thinking he has no clue.

Someone on CNBC today said he thought 20,000 reservations in the next month would be good.

dlake | March 30, 2016

Maybe that author has it backwards. ICE cost of ownership would be $21K more than Model 3 after 10 years. That makes more sense.
However, many journalists write about Tesla without having driven one or doing due diligence, causing them to make stupid statements.

JeffreyR | March 30, 2016

Only if using ChargePoint exclusively. They must think you'll need to buy hydrogen to fuel it.

Chunky Jr. | March 30, 2016

Maybe they are claiming that you'll have to get a new battery after 10 years and they guess that will cost $30K or more. Without any description about why it would cost more, it just seems like they made it up.

I can't think of a normal scenario where owning a Tesla costs more than owning an ICE. Fuel is cheaper, maintenance is cheaper, but insurance might be more expensive depending on ICE car. Depreciation is probably a wash at worst.

NKYTA | March 30, 2016

Bosh. Complete bosh. If I get to 10 yrs in my MS, it will be cost of tires every two years and some chump change along the way.

+1 Jeffrey
+1 dblake

Someone on CNBC should check the lines at stores.

NKYTA | March 30, 2016

Chunky, oh, my bad, it is only 8 years, unlimited mileage for the power train. I'll cede those extra two years.
;-)

Chunky Jr. | March 30, 2016

@NKYTA : It's very fishy that they picked 10 years, which just happens to be outside the battery warranty. There's no way Model 3 costs that much more unless they picked some ridiculous number as the cost of replacing the battery.

Red Sage ca us | March 31, 2016

I honestly believe that certain 'journalists' are ordered by their editors-in-chief to only write bad stories about Tesla Motors, regardless of facts, until such time as they begin to purchase advertising. The problem is...? The internet. For anyone willing to fact check an article, the truth is within reach of a 0.0000263 second Google Search.

Tstolz | March 31, 2016

I agree, some publications seem to go out of their way to diss Tesla. Really a dumb move if you think about it ... eventually Tesla will need to advertise ... and here these guys are burning bridges with one of the biggest future car makers, solar cell makers, battery storage makers, and rocket companies ... dumb, dumb, dumb!

The other thing I don't get is how any North American writer can be against Tesla. Tesla has managed to make American cars the most desirable on the planet, they outperform everything while being good for the environment to boot! How do these writers even sleep? When I die I want to go knowing I helped make the world a better place ... even if it's just a minor contribution. These guys are working to do the opposite!

bjdraw | March 31, 2016

Most writers are motivated by two things; money and ego. In either case, they don't want anyone telling them what to write, but they do want to write something they believe and that someone will read (which means it needs to be published). So if they don't like electric cars, then yeah, they'll do whatever research they have to in order to turn up facts to support their case. No conspiracy theories necessary, just plain ignorance.

Chunky Jr. | March 31, 2016

Some writers also have political/ideological axes to grind, and for some reason Tesla is the target of some of these.

Chunky Jr. | March 31, 2016

Also note that the particular analyst who came up with the ridiculous $21K number did not justify it in any way - I tried to find how he came up with that number and all I found were articles that picked that particular info. The analyst as a $140 price target for TSLA so clearly he is shorting the stock.

jordanrichard | March 31, 2016

Cost of ownership? In 2015, I saved a total of $2022 in gas. That more than covered the cost of a new set of tires and the first annual service.

Tesla-David | March 31, 2016

Total BS, to imply Model ≡ will have maintenance costs more than ICE. Utter rubbish!

Hi_Tech | March 31, 2016

MS: 2.5years, 63k miles, 1 service, about 20,000kwh (of which half using superchargers, rest using lower cost solar panels), winter tires and wheels = $3,000.

If it was a ICE, I'd be above $7,500 for the same types of service and fuel for the distance.

Even after 10 years, I expect far lower cost for EVs, than ICE.

MyXinTx | March 31, 2016

What do you expect??? It's MSNBC...and she is a spokesperson of Many Senseless Nobodies Boldly Confused

They subscribe to "Don't confuse me with the facts, My mind's already made up"

Haggy | March 31, 2016

If you are allowed to make stupid assumptions that have nothing to do with the real world, you come up with stupid answers.

Let's assume that somebody buys a Model 3 who used to spend $100/week on gasoline, which is the real life situation of the person who was in front of me in line this morning. If he gets EV rates for charging, and charges at work (he told me he could do so for free) then he'd save about $50,000 over a decade, assuming he does some charging at home. Plus he will get about $10K in tax credits and rebates. So he'd save about $60,000. If somebody gave him a brand new car with gas mileage similar to what he gets now, and gave him $20K in cash along with it to buy gasoline, it would still be cheaper for him to buy a Model 3.

Your situation may vary.

mbb | March 31, 2016

The truth is, what journalists and stock analysts say no longer matter in today's connected world. The enthusiasm of everyone waiting in line is the proof.

Red Sage ca us | March 31, 2016

In local news here in Los Angeles, it seemed everyone was determined to entirely ignore the situation at Tesla Motors stores. Then, just before noon, KABC 7 I'mWitlessNews finally did about a 15-to-20 second spot where they mentioned the lines at Tesla Stores and people camping out at them. I think they might have a slightly longer segment at the 5:00 pm news... maybe.

Hi_Tech | March 31, 2016

That's a good point. I didn't notice any news vans or cameras. Did anyone notice news reporters anywhere?

KP in NPT | March 31, 2016

In Dedham, MA, the guy first in line was the first to line up in North America. Showed up with his tent 2 days ago after lunchtime. Guess he was in the WSJ? (this was line chatter this morning.)

#2 in line, also with tent, has a friend who works for the local Boston Fox affiliate - which is literally a stones throw from this Tesla location. #2 called Fox friend...and they were not interested. There was no news in Dedham this morning. Not sure about other locations - Natick was even more crowded.

KP in NPT | March 31, 2016

In Dedham, MA, the guy first in line was the first to line up in North America. Showed up with his tent 2 days ago after lunchtime. Guess he was in the WSJ? (this was line chatter this morning.)

#2 in line, also with tent, has a friend who works for the local Boston Fox affiliate - which is literally a stones throw from this Tesla location. #2 called Fox friend...and they were not interested. There was no news in Dedham this morning. Not sure about other locations - Natick was even more crowded.

Red Sage ca us | March 31, 2016

KTLA Channel 5 here in Los Angeles finally did a 3-to-4 minute segment during their live 1:00 news broadcast. They sent someone to the Pasadena Tesla Store, where there was still a LONG line... Since then they have advertised that their morning news show will cover Model ☰ in detail tomorrow. So, I guess that means they either intend to go to Hawthorne this evening, or that they will acquire footage from another source to use for future broadcasts using their own copy and voiceover talent.

JeffreyR | March 31, 2016

@HiteshBhatt
I was interviewed by a "print" reporter and saw a guy w/ a VERY expensive/fancy camera taking footage. No reporter w/ him though.

The Wait Begins: What it was like at Santana Row this morning

georgehawley.fl.us | March 31, 2016

Our local ABC affiliate covered the kickoff of taking reservations.

georgehawley.fl.us | March 31, 2016

What if the price of gasoline doubles again?
What if the price of Li-ion cells halves next year?

Wanna bet?