Tesla vs Petrol: Which Is Cheaper to Run in Australia? (2026)

Tesla vs Petrol: Which Is Really Cheaper to Run in Australia?

With petrol prices stubbornly high and electricity costs under the spotlight, more Australians are asking: is a Tesla actually cheaper to run than a petrol car?

The short answer is yes — but the full picture depends on how you charge, how far you drive, and what petrol car you're comparing against.

This guide breaks down every major cost category so you can make an informed decision.

Fuel vs Charging: The Biggest Saving

This is where EVs win most convincingly. Here's a direct comparison based on 15,000km per year of driving:

• Petrol car (10L/100km at $2.00/L): ~$3,000/year in fuel
• Tesla Model Y (home charging at $0.25/kWh): ~$750–$900/year
• Tesla Model Y (off-peak or solar): ~$300–$500/year
• Tesla Model Y (OVO Energy free 11am–2pm window): potentially $0–$200/year

That's a saving of $2,000–$2,700 per year on fuel alone for the average Australian driver.

Servicing and Maintenance Costs

Petrol cars have significantly more moving parts — engine, transmission, exhaust, coolant system, timing belt — all of which require regular servicing and eventual replacement. Teslas have far fewer mechanical components.

• Petrol car servicing: $400–$1,200/year depending on make and model
• Tesla servicing: $0–$300/year (tyre rotations, cabin air filter, brake fluid check — no oil changes, no timing belts)
• Brake wear: Teslas use regenerative braking, so brake pads last significantly longer — often 3–5x the life of a petrol car's pads

Over 5 years, the servicing saving alone can be $3,000–$6,000.

Registration and CTP Insurance

Registration costs are broadly similar between EVs and petrol cars in most Australian states.

Some states previously offered EV registration discounts, though these have been wound back in several jurisdictions.

CTP (compulsory third party) insurance is also comparable.

Comprehensive Insurance

Tesla insurance can be higher than equivalent petrol cars due to repair costs and parts availability. Expect to pay $1,500–$2,500/year for comprehensive cover on a Tesla Model Y in Australia, depending on your insurer, location and driving history.

This is one area where petrol cars often have an advantage, particularly older or lower-value models.

Depreciation

Depreciation is the largest cost of car ownership for most people and it varies significantly.

Tesla Model Y has held its value reasonably well in Australia, though the market has softened as more EVs enter the market. A petrol car's depreciation depends heavily on make, model and condition.

As a rough guide, both a mid-range petrol SUV and a Tesla Model Y might depreciate $4,000–$8,000 per year in the first few years of ownership — making this category broadly comparable.

Total Annual Running Cost Comparison

• Mid-size petrol SUV (15,000km/year): ~$8,000–$12,000/year (fuel + servicing + rego + insurance)
• Tesla Model Y (home charging, 15,000km/year): ~$4,000–$7,000/year (charging + minimal servicing + rego + insurance)

The Tesla comes out $2,000–$5,000 cheaper per year to run for most Australian drivers — and that gap widens further if you have solar or access to free charging windows.

Calculate Your Own EV vs Petrol Saving

Everyone's situation is different. Your driving distance, electricity rate, petrol price and current car all affect the real numbers. Use our free calculator to get a personalised comparison:

→ Try the EV vs Petrol Savings Calculator (Free)

What About the Purchase Price?

A Tesla Model Y currently starts at around $58,900–$75,900 drive-away in Australia depending on variant. A comparable petrol SUV (Toyota RAV4, Mazda CX-5) typically costs $38,000–$55,000. The upfront gap is real — but when you factor in 5–10 years of lower running costs, the total cost of ownership often favours the Tesla.

The break-even point for most Australian buyers is typically 3–5 years depending on driving habits and charging setup.

Tips to Maximise Your Tesla Savings in Australia

• Switch to an EV energy plan — OVO Energy offers free electricity between 11am–2pm, which can effectively eliminate your charging costs if you can schedule during that window.
• Sign up here and get a $180 bill credit (referral link)
• Install home solar if you don't already have it — the combination of solar + Tesla is where the biggest long-term savings are
• Use off-peak charging overnight if you can't charge during the day
• Minimise Supercharger use for daily driving — reserve it for road trips

Frequently Asked Questions

Is a Tesla cheaper to run than a petrol car in Australia?

Yes, for most Australian drivers a Tesla is significantly cheaper to run than a comparable petrol car.

The main savings come from lower fuel/charging costs and reduced servicing. 

At 15,000km per year, most Tesla owners save $2,000–$5,000 annually compared to a petrol SUV.

How much do you save on fuel by switching to a Tesla in Australia?

At average Australian petrol prices and home charging rates, most drivers save $2,000–$2,700 per year on fuel alone.

With solar or a free-power EV energy plan, savings can be even higher.

What are the hidden costs of owning a Tesla in Australia?

The main additional costs to factor in are: comprehensive insurance (can be higher than petrol equivalents) and tyre replacement (Teslas are heavier and can wear tyres faster).

Home charger installation is a one-off cost of $800–$2,000 if you don't already have one.

How long does it take for a Tesla to pay for itself vs a petrol car?

For most Australian buyers, the break-even point on total cost of ownership (purchase price + running costs) is approximately 3–5 years, depending on how much you drive and how cheaply you can charge.

Do Teslas need servicing in Australia?

Teslas require minimal servicing compared to petrol cars. There are no oil changes, no timing belts and no exhaust system.

Annual maintenance typically involves tyre rotation, cabin air filter replacement and brake fluid checks — costing $0–$300/year.