Why are Teslas so Expensive? (Solved & Answered)

Why are teslas so expensive

Tesla is one of the most innovative and cutting-edge car companies in the world. In fact, that’s why their cars are so expensive. Tesla first started production as a small startup which led them to create complex and revolutionary technology.

The company decided to focus on becoming an electric car manufacturer and after several years of production, they have become the maker of some of the most highly-regarded electric cars in the market today.

You may have heard about Tesla models and wondered why they are so expensive. In this post, you’ll get answers to your questions even if you don’t own any of the models.

In short, the main reason why Tesla Evs are so expensive is the fact that they use high-priced lithium-ion Batteries, Electric Motors, and All Teslas are equipped with advanced features like Streaming services as standard.

How Much Does a Tesla Cost?

In 2022 The cheapest model 3 starts from $46,440 for Standard Range Plus and goes all the way up to $63,440 for performance. There are two more models: Rear-Wheel Drive and Long Range. The Rear-Wheel Drive Model 3 starts from $48,440 and The Long Range Model 3 starts from $55,940.

Why are Teslas So Expensive

1. Tesla lithium-ion Batteries:

The battery is the most expensive component of a Tesla. Batteries make up about half of a Tesla’s cost.

Because Teslas are electric cars, the biggest single component that determines its cost is the battery pack. The Tesla battery pack contains thousands of small battery cells. The main factor that makes Tesla cars more expensive is the battery.

There are a number of reasons why lithium-ion batteries are so expensive, but there are several main factors:

  • The cost of raw materials (the most expensive of which is cobalt)
  • The complexity and time required to manufacture the cells
  • A lack of economies of scale
  • Tesla’s high-end battery technology

2. High Priced Electric Motors:

electric motors cost a lot of money.

Electric motors are very complex pieces of machinery, which require a tremendous amount of resources and capital to build. They also require a high level of engineering and manufacturing experience, which allows them to be built in large numbers.

In addition, electric motors are often made with exotic metals that are not readily available in large quantities. These include nickel, cobalt, silver, copper, and titanium.

An electric motor is a device that converts electrical energy into mechanical energy. In the case of an electric car, the electrical energy is stored in a battery and converted by the motor to power the wheels.

This means the efficiency of an electric motor directly affects the range of an electric vehicle, as fewer electrons are needed to go the same distance. For this reason, it’s critical for automakers to design or buy highly efficient motors.

It’s important to note that there are two types of electric motors used in today’s cars: AC induction motors and permanent magnet motors. Tesla uses induction motors (the same kind Chevrolet uses in its Bolt EV) while most others use permanent magnet motors.

An induction motor simply consists of a rotor that spins inside a stator. The stator is energized by alternating current (AC) electricity which is then converted by a magnetic field into rotational torque on the rotor shaft, spinning it and moving your car forward.

3. High-Quality Material Used

Tesla vehicles have a similar interior quality to luxury brands such as Mercedes-Benz or BMW. They use top-quality materials such as faux leather or real leather in some models.

They use high-quality Piano black trim and brushed metal accents as well as open-pore wood in some models. Their dashboard is also one of the largest in any car on the road today. All these factors add to the overall cost of making their cars and thus increase their final price tag.

Tesla uses high-quality material in its interior. This makes the car look luxurious and at the same time gives a posh feel. You can’t expect a luxury car to be cheap with just an average interior.

4. Auto-Pilot Feature

Tesla cars are known for its self-driving feature called autopilot. Therefore, if you’re going to buy this car, it is expected that you’ll use this feature too. It’s not cheap using an autopilot driving feature but it will save your time and money in the long run because the autopilot can drive by itself without any input from the driver.

5. Decent Safety Features

The safety features of Tesla cars are very advanced which makes all its models very safe to drive and ride on. It has all the necessary safety features that you need while driving whether it is day or night, sunny or rainy day, hilly or mountainous road etc. Also all these safety features are provided free of cost so no need to pay extra money for these things!

6. Advanced Tech and Features

One of the reasons why Teslas are so expensive is the advanced technology and features that Tesla offers that other cars don’t offer.

Here are some of the things that you can get with a Tesla but not with a regular car:

1. Streaming services (Netflix, YouTube, Hulu)

2. Sentry Mode

3. Dog Mode (keeps your dog safe in the car)

4. Summon Mode (self-driving mode to park or come out of a parking spot)

5. Bioweapon defense mode

6. Over-the-air updates (software updates wirelessly from any location)

Are Teslas Considered Luxury Cars?

Tesla is a luxury car. But, when compared to other luxury car manufacturers like BMW, Mercedes, and Audi, Tesla is more geared towards tech and Convenience simplicity but less luxurious than these German Giants.

The case for Tesla being a luxury vehicle:

Tesla makes cars with features that are considered luxurious by the majority of people.

Tesla uses materials that are expensive… and are used in luxury cars.

Features you get in a Tesla are usually found in more expensive luxury vehicles.

The case against Tesla being a luxury vehicle: Tesla’s price point is lower than most other luxury car manufacturers, with the Model 3 starting at $48,000.



Jimmy Mitchell is an electric vehicle aficionado who has been following the space since Tesla first hit the scene. A longtime proponent of sustainable transportation, Jimmy was one of the first to buy a Tesla 3 as soon as it came out. He loves nothing more than helping others learn about and enjoy the benefits of electric vehicles. When he's not evangelizing about EVs, Jimmy enjoys spending time with his family and travelling throughout south east asia

Recent Posts