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Fuzzy Math in 'Saving and rolling with a Tesla' article

Discussion in 'Tesla' started by cycledrum, Jan 27, 2013.

  1. cycledrum

    cycledrum PSOCSOASP

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    Article entitled 'Saving and rolling with a Tesla sedan' in Bay Area News Group paper.

    Of the Tesla Model S, he claims 'in effect, you have a real cool car for less than the price of a Prius.'

    His fuzzy math is like this: drives 20k / yr, spends $4k on gas. ok.
    keeps cars long time, gets to spending $2k on service and repairs. Wow, sorry about that
    total - $6k / year on his car. o.k.

    claims 'Tesla sedan will cost over $60k.. ' << um, yeah, like $62.4 after credit and before TTL, Let's just say about $70k OTD for a 60kWh

    How does he make up the $40k diff over a Prius Four?
    Seems he forgot to add in the cost of home and away charging ....

    and what about the replacement battery cost? Does Tesla not offer a $10k pre-pay battery option for 60kWh Model S? $12k for 85kWh?

    Won't most be looking for a battery replacement in 10 years as the range will have degraded?
     
    #1 cycledrum, Jan 27, 2013
  2. John H

    John H Senior Member

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    Here is a link to the article.

    www.mercurynews.com/business/ci_22452357/butler-saving-and-rolling-tesla-sedan

    I think his arguments is based on a tax adjusted cash flow model and takes into consideration his home mounted solar panels.

    The use of a tax adjusted cash flow model is appropriate, especially as personal income tax rates have gone up, and especially at 39+% marginal rates.
     
    #2 John H, Jan 27, 2013
  3. austingreen

    austingreen Senior Member

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    Looking at the article he does say...

    Lots of people in the bay area spend much more than that per year on their cars.


    Its cali, there is a $2500 state credit and a $7500 tax credit. You figure your trading something in, so you only pay tax on the difference in price. $60K isn't a reach although I don't know california tittle and license fees for electrics, they are lowered here.

    He was acting like with all the tax credits for his solar and his plan he was paying next to nothing to charge the car at night. Tesla I believe is going to have free quick chargers for Tesla customers also.

    I think that was the big hole in his argument maintenance costs are not likely to be less than a prius, they will be more. Will gas savings equal depreciation and maintenance cost differences? I doubt it, but you do get to drive a very cool car.

    I doubt most original tesla owners will still be driving their car in 10 years, they will be sold. Its an initial adopters market. If the original owner still has the car, it will be as a collectible, garaged with battery charged to keep its life up.
     
    #3 austingreen, Jan 28, 2013
  4. ksstathead

    ksstathead Active Member

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    And the insurance cost of the 2 cars is...
     
    #4 ksstathead, Jan 28, 2013
  5. John H

    John H Senior Member

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    for an experienced driver that is close to retirement age? not much different than a $30,000 Prius.


    Butler did not take into consideration the $600 annual maintenance contract, which seems high considering the simplicity of the vehicle but includes all the software updates, which have been significant upgrades. How much do annual Navigation updates for a Prius cost ?
     
    #5 John H, Jan 28, 2013
  6. ETC(SS)

    ETC(SS) The OTHER One Percenter.....

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    You can save a helluva lot of money if you spend enough money...

    Federal Budgeting 101. :rolleyes:
     
    #6 ETC(SS), Jan 28, 2013
  7. cycledrum

    cycledrum PSOCSOASP

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    Not in CA, you pay tax on the whole price of the car. I thought that trading in the Accord for Prius, but nope.
     
    #7 cycledrum, Jan 28, 2013
    austingreen likes this.
  8. efusco

    efusco Moderator Emeritus
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    I guess it depends upon a lot of things, but for us it was around $600/yr.
     
    #8 efusco, Feb 15, 2013
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