The honest answer: a Tesla saves money on running costs but costs more upfront. Whether it saves money overall depends on your mileage, how you charge, and which model and petrol car you compare. For most UK drivers who charge at home and cover more than 100 miles per week, a Tesla will save money compared to an equivalent petrol car over a 3-year ownership period.
Fuel savings — home charging vs petrol
This is where the biggest saving lies. Using the current UK rates (February 2026):
- Tesla Model Y LR at home: 27.69p/kWh, 3.7 mi/kWh efficiency → ~7.3p/mile
- Petrol car at 35 mpg: 131.6p/litre → ~21.5p/mile
For a driver covering 200 miles per week:
- Tesla home charging: ~£759/year
- Petrol equivalent: ~£3,148/year
- Annual saving: ~£2,389
Over three years that is a fuel saving of nearly £7,167 — a substantial amount that goes a long way towards offsetting any price premium.
Road tax (VED)
Until April 2025, zero-emission vehicles were exempt from Vehicle Excise Duty. From April 2025, EVs registered after April 2017 now pay the standard VED rate of £190/year — the same as most petrol cars. New EVs over £40,000 also pay the expensive car supplement: £620/year for years two through six.
This change reduces the VED advantage Tesla owners previously enjoyed, but at £190/year it remains a modest figure relative to total running costs.
Maintenance savings
EVs have significantly fewer moving parts than petrol cars. The practical savings for Tesla owners include:
- No oil changes — saving approximately £120–£180/year.
- Less brake wear — regenerative braking does most of the deceleration work, so brake pads last 2–4× longer than on a petrol car.
- No exhaust system — no catalytic converter, no DPF replacements.
- No clutch, no timing belt — eliminating two common sources of expensive repairs.
- Tesla annual service: ~£200–£300/year (largely a safety inspection and cabin air filter replacement).
- Typical petrol car service: ~£400–£600/year including oil, filters, and spark plugs.
Conservative annual maintenance saving: approximately £200–£300.
Insurance — the honest truth
Tesla insurance is typically 10–25% higher than an equivalent petrol or diesel car. Reasons include the high cost of body repairs (aluminium body panels, expensive sensors), the high replacement cost of the battery, and the relatively limited number of Tesla-certified repair centres in the UK.
Typical annual insurance costs for a Tesla Model Y in the UK:
- Age 25–35, clean licence: £900–£1,400/year
- Age 40–55, clean licence: £700–£1,000/year
An equivalent BMW X3 or Volkswagen Tiguan typically costs £600–£900/year to insure. Budget for roughly £100–£300 higher insurance costs per year for a Tesla. Insurers including Admiral, Direct Line and Aviva have improved their EV pricing in recent years, so it is worth shopping around annually.
Depreciation
Tesla holds residual value relatively well compared to other EVs. Several factors work in Tesla's favour:
- Over-the-air software updates keep the car feeling current even as it ages.
- No model years — Tesla updates cars continuously, so there is less of a cliff edge between model years.
- Strong brand recognition and demand for used Teslas.
Model Y depreciation is approximately 25–30% over 3 years — similar to premium German SUVs. Some older Tesla models have depreciated more sharply due to price cuts Tesla made in 2023.
Total cost of ownership summary
Comparing a Tesla Model Y Long Range against a comparable premium petrol SUV (e.g. BMW X3 xDrive20i) over 3 years, covering 200 miles/week:
| Cost category | Tesla Model Y Long Range | BMW X3 xDrive20i (petrol) |
|---|---|---|
| Purchase price | £51,490 | £45,000 |
| Annual fuel/charging | £759 | £3,148 |
| VED (road tax) | £190 (+ £620 supplement yr 1) | £190 |
| Annual servicing | ~£250 | ~£500 |
| Annual insurance | ~£1,100 | ~£800 |
| Annual running total | ~£2,299 | ~£4,638 |
| 3-year running saving | ~£7,017 less to run | |
Over 3 years the Tesla costs approximately £7,017 less to run, which substantially offsets its higher purchase price of ~£6,490. The conclusion: for a high-mileage driver charging mainly at home, a Tesla Model Y is broadly cost-neutral vs a comparable petrol SUV over 3 years — and cheaper thereafter.
Use our free calculator
Use our savings calculator →Is it worth it?
Yes, for most UK drivers who:
- Can charge at home (the biggest single factor)
- Drive more than 100 miles per week
- Plan to keep the car for 3+ years
The maths is closer if you:
- Rely mainly on public charging (Supercharger or third-party)
- Drive fewer than 100 miles per week
- Live in a flat without dedicated charging
Beyond the numbers, the convenience of waking up every morning with a full battery — and never visiting a petrol station — is a benefit many Tesla owners cite as unexpectedly valuable.
Ready to order?
Get 650 miles of free Supercharging
Use referral link when ordering your Tesla and receive 650 miles of complimentary Supercharging.
Order with referral link →Frequently asked questions
How much does a Tesla save per year in fuel?
For a driver covering 200 miles per week, home charging a Tesla costs roughly £759/year vs £3,148 for a petrol equivalent at 35 mpg and 131.6p/litre — a saving of approximately £2,389/year on fuel alone.
Is a Tesla cheaper to maintain than a petrol car?
Yes. EVs have fewer moving parts — no oil changes, less brake wear due to regenerative braking, no exhaust system. Expect to save £200–£300/year on maintenance compared to a comparable petrol car. Tesla's annual service is typically £200–£300 vs £400–£600 for an equivalent petrol car.
Does Tesla road tax cost anything?
From April 2025, all EVs registered after April 2017 pay the standard VED rate of £190/year (previously exempt). New Teslas over £40,000 also attract the expensive car supplement of £620/year for years two through six of ownership.