With all the recent buzz around the electric vehicle industry, there have been general statements by the public that seem to think the oil industry will begin to fall. Each year more and more Electric Vehicles are produced and sold. Every year, those numbers seem to rapidly increase, almost doubling in popularity!
Each year the Electric Vehicle sales increase. Fortunately, the petro powered vehicles have increased their fuel efficiency each year to counteract the Electric Vehicle growth.
- Each year, the passenger vehicle EPA MPG ratings steadily climb.
- During 2008, the average MPG was 20.8MPG.
- During 2017, the average was calculated to be 25.4 MPG.
Tesla, while pioneers in their field, has a much higher up front vehicle cost when compared to a similar feature vehicle. For the comparison, we will use a BMW 530i x-drive. The Tesla model S costs approximately $75,000 whereas the BMW with similar features weighs in at $55,000. As many people like to compare strictly all mighty MPG for purchasing, the savvier consumer may utilizing the vehicle cost to fuel consumption comparison (similar to cost of ownership).
For every 75,000 miles:
- Tesla consumes 33kWh/100mi (each kWh will cost approximately $.065)
- Equates to a $1,609.00 fuel cost
- BMW consumes about 28MPG ($3.15/gal).
- Equates to a fuel cost of $8,437.00.
Now looking at the fuel costs alone, the BMW is over 5x the cost of the Tesla! However, when factoring in the vehicle cost and adding the fuel cost, the BMW is still a favorable option with regard to cost of ownership.
TESLA Cost over 75k miles
- $75,000 vehicle cost + $1,609 fuel cost = $76,609
- $76,609/5years = $15,321/year
BMW Cost over 75k miles
- $55,000 vehicle cost + $8,437 fuel cost = $63,437
- $63,437/5years = $12,687/year
Food for thought:
- There are over 1.2 billion Gas powered vehicles on the road today.
- Approximately 1.2 million Electric vehicles are buzzing around the roads today.
- .001% of today’s vehicles on the road are Electric.