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Tesla's Robotaxi Vehicle Will END Car Ownership - A Staggering Difference In Economics

Cars are expensive to own, with a plethora of different costs. In the future, hailing a ride in a Tesla robotaxi is going to be far cheaper than owning a car.
Tesla's Robotaxi Vehicle Will END Car Ownership - A Staggering Difference In Economics

The True Cost Of Car Ownership Compared To Just Hailing A Ride In A Tesla Robotaxi

In an age where technology promises not just convenience but also financial prudence, the traditional model of car ownership stands at a crossroads.

With Tesla's introduction of robotaxis, potentially offering rides at a rate as low as 20 cents per mile, the economics of owning a car versus hailing a ride deserves a closer look.

Here's an in-depth comparison highlighting why opting for a Tesla robotaxi could be significantly more cost-effective than owning a car, focusing on a vehicle with an average price of $40,000 and annual usage of 10,000 miles.

1. Big Upfront Payment

Purchasing a new car often requires a substantial down payment or full payment upfront. For our $40,000 car, even with a modest down payment of 20%, you're looking at $8,000 out of pocket immediately. In contrast, using a Tesla robotaxi involves no such initial capital outlay.

2. Sales Tax

Depending on your state or country, sales tax on a new car can add thousands to the cost. For instance, a 7% sales tax on a $40,000 car adds $2,800. Robotaxi rides are typically taxed at usage, which would be included in the per-mile cost.

3. Depreciation

Cars depreciate rapidly. Within three years, a new car can lose up to 60% of its value. For our $40,000 car, this could mean a depreciation cost of $24,000. With depreciation, that is money that is gone. Tesla robotaxis, being a service rather than an asset, relieve users of this burden.

However, owning a Tesla in the future and not some other car, could surpass depreciation and make the car an appreciating asset as it becomes a robotaxi that makes money for you.

4. Yearly License & Registration

Every year, there's the cost of renewing your vehicle's registration and license, which can range from $70 to $200 annually. Over five years, this could total around $500 to $1,000.

5. Remember to Put Those Little Stickers On

Inspection stickers, parking permits, or any special tags can add small but recurring costs. While minimal, these are costs avoided with a robotaxi.

6. Pay to Park It

Parking fees in urban areas can be substantial. If you pay $10 per day for parking, over a year, that's $3,650. Robotaxis are utilized continuously, reducing or eliminating this cost for users.

7. Pay to Fuel It

Assuming 25 miles per gallon and gasoline at $3 per gallon, driving 10,000 miles would cost $1,200 annually. Robotaxi pricing already includes this.

8. Pay Parking Tickets and Speeding Tickets

These are unpredictable but can be significant. A single speeding ticket can cost over $100. Robotaxis, operated autonomously, might reduce such risks.

9. Pay for Car Insurance

Car insurance varies widely, but even a modest policy could be $1,200 a year. Robotaxi services might include insurance or charge a minimal fee for liability coverage, substantially reducing this cost.

10. Pay for Maintenance

Routine maintenance like oil changes, brake pads, and the like could cost $500 annually. Tesla's maintain their vehicles efficiently, which might also be reflected in the per-mile cost but could still be less than owning.

11. Clean / Wash the Car

Washing and cleaning your car might cost $50 a month if done professionally, totaling $600 per year.

12. New Tires

Tires need replacement every few years; let's say $500 every 3 years, or $167 annually.

13. Pay to Fix Things That Break

Unexpected repairs can be costly. A conservative estimate might be $500 per year for minor repairs.

14. Interest Expense for Car Loan

If you finance the car at 5% interest over 5 years, you'll pay around $3,700 in interest alone.

Total Cost Comparison

Car Ownership Costs

  • Upfront Payment (Down Payment): $8,000
  • Sales Tax: $2,800
  • Depreciation (Over 5 years): $24,000
  • Registration & License: $1,000 (over 5 years)
  • Parking: $18,250 (over 5 years)
  • Fuel: $6,000 (over 5 years)
  • Tickets (Assuming minimal): $200/year, $1,000 (over 5 years)
  • Insurance: $6,000 (over 5 years)
  • Maintenance: $2,500 (over 5 years)
  • Cleaning: $3,000 (over 5 years)
  • Tires: $835 (over 5 years)
  • Repairs: $2,500 (over 5 years)
  • Interest: $3,700
     
  • Tota Car Ownership Cost:
    • Annual Cost: $15,957 (10,000 miles driven)
    • Over 5 Years: $79,785
  • Total Tesla Robotaxi Cost:
    • Annual Cost: $2,000 (10,000 miles at $0.20/mile)
    • Total Costs Over 5 Years: $10,000

A Staggering Difference

The total cost of owning a car over five years, considering all factors, can exceed $79,000.

Sure, you can buy used and not park it anywhere and knock off some other expenses - even $30,000, and you still have a cost of around $39,000, nearly 4 times the cost of a Tesla robotaxi, without all the time and hassle.

In contrast, using Tesla robotaxis for the same period would cost $10,000, assuming consistent pricing and usage.

This stark comparison not only illustrates the financial burden of car ownership but also highlights how innovative transport solutions like Tesla's robotaxis could redefine personal mobility, making it not just more convenient but also far more economical.

As technology and services evolve, the choice to own a car might increasingly seem like an expensive luxury rather than a necessity.

Will Tesla's robotaxi vehicle end car ownership? Are the costs outlined here in line with your own experience?

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Hi! I'm Jeremy Noel Johnson, and I am a Tesla investor and supporter and own a 2022 Model 3 RWD EV and I don't have range anxiety :). I enjoy bringing you breaking Tesla news as well as anything about Tesla or other EV companies I can find, like Aptera. Other interests of mine are AI, Tesla Energy and the Tesla Bot! You can follow me on X.COM or LinkedIn to stay in touch and follow my Tesla and EV news coverage.

Image Credit: Tesla, Screenshot

Article Reference: Tesla

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