How plummeting oil prices are puncturing Tesla's savings claim on EVs

Tesla has estimated $4,300 in gas savings for buyers of the Model 3 sedan since at least late 2018.That number has remained static even as pump prices have fluctuated and, more recently, fallen precipitously.
By : Bloomberg
| Updated on: 21 Apr 2020, 10:13 AM
File photo: The approximate savings Tesla tells U.S. consumers they can expect from no longer having to go to the pump isn’t keeping up with reality. (Tesla Model 3) (AP)
File photo: The approximate savings Tesla tells U.S. consumers they can expect from no longer having to go to the pump isn’t keeping up with reality. (Tesla Model 3) (AP)
File photo: The approximate savings Tesla tells U.S. consumers they can expect from no longer having to go to the pump isn’t keeping up with reality. (Tesla Model 3) (AP)
File photo: The approximate savings Tesla tells U.S. consumers they can expect from no longer having to go to the pump isn’t keeping up with reality. (Tesla Model 3)

The approximate savings Tesla Inc. tells U.S. consumers they can expect from no longer having to go to the pump isn’t keeping up with reality.

The electric-car maker has, for example, estimated $4,300 in gas savings for buyers of the Model 3 sedan since at least late 2018. That number has remained static even as pump prices have fluctuated and, more recently, fallen precipitously. The national average for regular unleaded dropped Monday to $1.81 a gallon, the lowest since March 2016, according to AAA.

Two U.S. cities are even averaging under $1 a gallon, a first in the 20-year history of GasBuddy, which bills itself as the most popular travel and navigation app in North America.

Similar Cars

Find More Cars
Tesla Model S (HT Auto photo)
UPCOMING
Tesla Model S
Electric | Automatic
₹70 - 1 Cr* *Expected Price
Tesla Model 3 (HT Auto photo)
UPCOMING
Tesla Model 3
Electric | Automatic
₹70 - 90 Lakhs* *Expected Price
Mercedes-benz V-class (HT Auto photo)
Mercedes-benz V-class
1950 cc | Diesel | Automatic (Torque Converter) | 16.67 kmpl
₹71.1 - 1.46 Lakhs**Ex-showroom price
Mercedes-benz E-class-all-terrain (HT Auto photo)
Mercedes-benz E-class-all-terrain
1950 cc | Diesel | Automatic | 12.06 kmpl
₹75 - 77.25 Lakhs**Ex-showroom price
Bmw X5 (HT Auto photo)
Bmw X5
2993 cc | Diesel | Automatic (Torque Converter) | 13.38 kmpl
₹75.5 - 90.9 Lakhs**Ex-showroom price

(Also read: Tesla CEO Elon Musk's 'ventilator' supplies become controversial)

“Truly unprecedented demand destruction has been dismantling expensive gas prices everywhere," Patrick DeHaan, GasBuddy’s head of petroleum analysis, said in a statement. “With oil again at new multi-decade lows, we still have room for prices to fall nearly countrywide."

FOLLOW US:Stay Updated with latest content - Subscribe us on
FOLLOW US:Stay Updated with latest content - Subscribe us on

To arrive at the $4,300 gas-savings figure for the Model 3, Tesla bases its estimate on drivers paying $2.85 a gallon and putting 10,000 miles on their car annually for six years.

(Also read: Tesla paint shop in Berlin factory will be the world's most advanced: Elon Musk)

The company’s estimated fuel-savings figures have stirred controversy before. The company agreed to change the way it markets the Model 3 in Germany last year by getting rid of claims that the nation’s fair-competition watchdog said were misleading.

First Published Date: 21 Apr 2020, 09:55 AM IST
Recommended For You
View All
NEXT ARTICLE BEGINS

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking VIEW OFFERS you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city