Tesla Model Y is not cheaper to drive than Honda CR-V or Toyota RAV4

As one study last year showed, Tesla cars do indeed have lower maintenance and repair costs for the first five years than those of other brands, mainly because it only manufactures electric vehicles.

In the longer run, however, or when the total cost of vehicle ownership is taken into account, Teslas no longer have the upper hand.

Model Y vs RAV4 vs Honda CR-V cost to drive

According to Tesla's own calculations, a Model Y buyer won't realize any savings for picking up the electric vehicle before two of the most popular gas-powered SUVs out there, the Honda CR-V and Toyota RAV4. This is despite that the Model Y doesn't need oil changes, or its brake jobs mainly consist of putting on sporty red caliper covers.

Tucked in Tesla's newly minted 2025 environmental impact report, the total cost of ownership per mile driven with the Model Y is $0.74, or the same as a Honda CR-V. The Toyota RAV4 has a slightly higher cost to drive, at $0.76 per mile, but then again, Tesla chose the cheaper and less power-hungry RWD Model Y to make the comparison.

The total cost of driving a Model Y includes the 5-year or 60,000-mile depreciation rate, followed by insurance expenses, repair or maintenance outlays and, last, the fuel costs, whether for electricity or gas. Here the picture becomes a bit murkier, as it is not clear if Tesla picked the price for charging at home, at Superchargers, or a mix of both for the comparison.

Also, as can be seen from its chart below, Tesla assumes roughly the same depreciation and insurance rates for the Model Y and Honda CR-V, while electric vehicles often command higher insurance premiums and come with faster depreciation rates.

The Model Y is Tesla's bestselling vehicle, though, and its depreciation holds the line against ICE vehicles well, at least initially, and especially against expensive to maintain premium brands like BMW whose X3 SUV costs the whopping $1.19 per mile to run.

Even if all of Tesla's calculations hold water in the end and don't paint an overly rosy picture of EV ownership when it comes to depreciation, fuel, or insurance, the main benefit of getting one of its cars doesn't seem to be financial.

In short, buyers are likely picking the Model Y for its smart car features like autonomous driving, or from an environmental perspective, rather than because of the total cost of ownership, especially against popular gas-powered vehicles from Toyota or Honda.