Tesla vs. gas car: Which state offers the biggest fuel savings?


A report released by the University of Michigan’s Transportation Research Institute is showing the cost savings to the average vehicle owner versus those same owners driving electric. The report compares gasoline fuel costs state-by-state to the cost of electricity for equivalent miles driven. The differences are shown in both ratios and dollar figures, with owners in some specific states seeing much higher savings when driving electric versus those from other states.

The report is unique in that it ignores the often-politicized arguments for data of this nature; such as the “source-to-use” data often manipulated or argued. Instead, it looks purely from a consumer perspective, showing what kinds of cost savings could be had for the average vehicle owner in any given state.

By comparing the average fuel economy of cars sold with the average expected range of a battery-electric vehicle sold on the market, the report found that drivers in Washington State, Oregon, Idaho, Louisiana, and Utah would save the most by switching to an electric vehicle. Drivers in Hawaii, New Hampshire, Connecticut, Rhode Island, and Massachusetts would save the least. Most of these differences are due to a lower disparity between gasoline costs and residential electricity costs in the latter list of states and a higher disparity between those in the former list.

The report’s data considered the average driving distance and amount per state (NHTSA data), the average fuel economy of vehicles sold in that state (per another UofM study), the average cost per gallon for gasoline state-by-state (according to AAA), and the average cost of electricity in each state (per EIA). The report then compared these to one another.

The average cost of gasoline in the United States, as of December 23, 2017, was $2.441 per gallon. The highest price was in Hawaii at $3.297 per gallon and the lowest was in Alabama at $2.169. High fuel costs, however, did not always translate directly into more savings with a battery electric vehicle. Similarly, lower fuel costs were not necessarily a guarantee that the payoff for going electric would be minimal. Electricity costs could change that.

And they did. The average price of residential electricity in the United States, as of October 2017, was $0.1284 per kilowatt hour. Hawaii had the highest price at $0.2929 per kWh and Louisiana had the lowest at $0.0972/kWh. The higher cost of electricity was more of an indicator of lower gains by going to an electric vehicle than were gasoline prices. Most of the states in the top five for benefiting the least by going electric were also within the top ten for the highest-priced electricity. Yet the states with the lowest-priced electricity were not likely to show up on the top five list for the best gains by getting an EV.

For overall averages nationwide, the cost of driving a gasoline vehicle was $1,117 per year while the average cost of driving a battery electric vehicle was $485. On the whole, most Americans can expect to save at least something if they go to an electric vehicle for most of their driving.

Also interesting was the average fuel economy required in order to meet or better the electric vehicle’s cost savings to the owner. Even in the worst states, where ratios were lowest, the average fuel economy was relatively high. In Hawaii, where a gasoline car owner can only expect to save about $400 per year for getting an EV, the required fuel economy to average that cost ratio out to $0 is 34.1 mpg. In the average state, the fuel economy required is around 57.6 mpg. In the state of Washington, a full 90 mpg is required to break even with an electric car.

These numbers are interesting and should speak directly to consumers at a bare-bones pocketbook level. Buying an EV can mean significant annual savings. The report, Relative Costs of Driving Electric and Gasoline Vehicles in the Individual U.S. States, can be found at this link.

Tesla vs. gas car: Which state offers the biggest fuel savings?


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Tesla victorious in Rhode Island after state approves license to sell direct


Tesla scored a major victory on Wednesday after the California-based electric car maker was given the green light to sell its vehicles to consumers within the state. Lawyers from the state Division of Motor Vehicles concluded that state law barring auto manufacturers from selling directly to consumers was only applicable to franchise auto dealers and not Tesla, who operates independently through company-owned stores.

With its business license finally approved, Tesla is planning on opening its first showroom in Rhode Island on Route 2 in Warwick. Tesla will be selling its fleet of premium electric vehicles at 870 Quaker Lane, which is the site of a former Hyundai dealership. While the majority of details about Tesla’s first store within the state remain unknown, expectations are high that the Silicon Valley-based electric car maker would formally start selling its cars within a few months.

Ironically, state law that originally barred Tesla from establishing a sales presence in Rhode Island has become a pain point for Ford and Toyota, automakers that have previously tried to file for similar licenses to sell direct to consumers, but failed because of their use of franchised dealerships.

Unlike the ongoing saga taking place in Michigan, Rhode Island has adopted a far friendlier stance to the increasing influence of Tesla in the auto industry. Last summer, R.I. Gov. Gina Raimondo met with Tesla CEO and co-founder Elon Musk at the National Governor’s Association meeting in Providence. After their conversation, the Rhode Island governor openly expressed her support for Tesla’s and its future ventures in the state.

“I would like Tesla to be able to sell here. Right now, I see Teslas driving around in Rhode Island, and they are purchased in Massachusetts. It would be a great thing if they could be purchased in Rhode Island, so we get the sales-tax revenue, and for our customers,” she said, according to a report from the Providence Journal.

As Tesla continues its push towards further expansion into the United States, “anti-Tesla” states such as Michigan seem to be fighting a losing battle against the Musk-led electric car maker and energy company. Just recently, Tesla opened job postings for a service role in Michigan, despite the presence of an ongoing lawsuit between Tesla and the state.

Tesla victorious in Rhode Island after state approves license to sell direct


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