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Personal Log: So You Want A Tesla Model S? See Why It’s Cheaper Than ICE.
Posted By R "Ray" Wang On January 26, 2013 @ 01:53 In disruptive,disruptive technologies,disruptive technology,Model S,R "Ray" Wang;,rwang0,Software Insider,SoftwareInsider,Tesla Motors,Trends | 15 Comments
The Latest Silicon Valley Disruption Is…A Car?
Source: Tesla Motors, Inc.
Whether you are a tree-hugging environmentalist or gas guzzling performance driver, the Tesla Model S  actually brings the best of both worlds together. The Tesla Model S is an all-electric, meaning not hybrid with a back up engine, vehicle that:
Pretty wild right? It also comes with an upfront sticker shock of $100,000 USD for the top line versions. This definitely puts the car out of reach for most folks, or not?
Source: Tesla Motors, Inc.
Behind The Numbers, The Model S Is Actually More Affordable Than You Think
Here’s the secret, the life time ownership costs are cheaper than owning an internal combustion engine (ICE) vehicle. Are you in shock? Let me show you why. Using the same approach we take to calculating technology ownership costs, we considered a number of factors (See Figure 1):
The comparison in Figure 1 assumes a comparison of an ICE (e.g. Audi A6, BMW 5-series, Lexus GS, Mercedes E-Class) vs an 85KwH Tesla Model S Performance Sedan with 19″ wheels. Take a look at the results:
Figure 1. ICE vs Tesla Model S (right click to view full image)
Source: Insider Associates, LLC.
With incentives, the car’s lifetime ownership costs, not including insurance, but including a one-time replacement battery of 10,000 USD is almost equivalent to the lifetime cost of an ICE. The cost savings come for a few reasons:
The Bottom Line: Have Your Cake And Eat It Too.
You don’t have to trade performance for greenness. The Tesla Model S is a game changer. While the costs are front-loaded, low vehicle interest rates below 2% make ownership very affordable. For more savings, put a solar panel on your roof. In the meantime, you can outrun a Porsche Panorama making faster, better, cheaper a reality.
Not convinced, go at it on your own. Here’s the spreadsheet . Have some fun.
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URL to article: http://blog.softwareinsider.org/2013/01/26/personal-log-so-you-want-a-tesla-model-s-see-why-its-cheaper-than-ice/
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 the Tesla Model S: http://www.teslamotors.com/models
 Image: http://blog.softwareinsider.org/2013/01/26/personal-log-so-you-want-a-tesla-model-s-see-why-its-cheaper-than-ice/screen-shot-2013-01-26-at-1-19-11-am/
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 spreadsheet: https://docs.google.com/spreadsheet/ccc?key=0AiCcKvOSuUWUdDQtcE0xaGRLRUkyTDdXQ0VrSm5kblE
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