Effective Cost of Ownership

Working with some of the largest and most respected banks in the country, Tesla has been able to create a financing product that combines the surety and comfort of ownership with all the advantages of a traditional lease.

U.S. Bank and Wells Fargo will finance the majority of Model S. In most cases, federal and state tax credits ranging from $7,500 to $15,000 effectively reimburse your down payment. These incentives are not available with leasing. Washington and DC also exempt sales taxes for electric vehicles.

If you do your financing with Tesla, we guarantee that the Model S will have the top residual value of any high volume premium sedan brand (Audi, BMW, Mercedes or Lexus) after three years of ownership.

Not only is Tesla guaranteeing that resale value, but Tesla CEO Elon Musk is personally standing behind that guarantee to give customers absolute peace of mind about the value of the asset they are purchasing.

We also encourage you to think about Model S ownership in terms of true out of pocket cost. When considering the savings from using electricity instead of gasoline, depreciation benefits, and other factors, buyers can save hundreds of dollars per month compared to owning a gasoline powered car.

Effective Monthly Cost

Customize your effective monthly cost to see how much you can save.

$550 / mo.

$1,050 / mo.

Estimated Payment

A minimum down payment of 10% is required.

Down Payment & EV Incentives

In many cases, you’ll recoup the cost of your down payment with electric vehicle incentives. You may even be eligible for more total incentives than you paid in your down payment. This will reduce your effective monthly cost. Incentives depend on the total price of your car and the state that you live in.

Combined federal and state incentives

In addition, New Jersey, Washington and DC have sales tax credits for electric vehicles.


Even with an increased electricity bill, you’ll see significant savings each month.

With a SolarCity PPA, you can lock in electricity prices for as low as $0.15 per kWh.

The national average is $0.11 per kWh.

$1,050 / mo.

3-Year Average Energy Savings

Guaranteed Resale Value

If you do your financing with Tesla, we guarantee that the Model S will have the top residual value of any high volume premium sedan brand (Audi, BMW, Mercedes or Lexus) after three years of ownership. Spread over 36 months, it means your effective monthly payment is lower by this amount.

-$55 / mo.

Guaranteed Resale Value

If you drive Model S for your business, you will be able to deduct depreciation, interest expense, operating expense, and other expenses from your taxable income.

If you sell Model S at the end of three years, you will experience an added tax benefit.

Most states allow EVs to drive in the carpool lane, which saves a significant amount of time in rush hour traffic.

Detouring to a gas station and refilling the tank takes time out of your day. Plugging in Model S takes seconds, just like your phone, and you’ll wake up to a full charge every day.

This calculator is intended to give you an idea of how much you can save by driving Model S compared to a gasoline sedan.

Financing approval is based on your credit and program guidelines. Changes in term or down payment may change the annual percentage rate and are subject to change without notice. We have excluded sales tax, registration fees, and loan fees from the above calculator because they vary from state to state and in some cases, town to town. Financing is currently only available in the following states: CA, CO, FL, GA, IL, MA, MN, MO, NC, NV, NY, OH, OR and WA. If you live outside of these states, contact us for alternate financing options.

Loans are offered through U.S. Bank and Wells Fargo. Neither U.S. Bank nor Wells Fargo is associated with the Guaranteed Resale Value. Some loans with low down payments will not have a Guaranteed Resale Value that exceeds the loan principle at month 36, but will before month 39.

When calculating business tax benefit estimates, we have assumed a 40% effective tax rate and 70% business use of your car. These estimates include depreciation, interest expenses, and operating expenses from use of electricity over gasoline. Your effective tax rate and actual use of your car will change the estimates provided. Learn more about Guaranteed Resale Value.