Tesla’s online configurator for its electric cars primarily shows a price that’s adjusted for incentives and estimated fuel savings. These savings vary depending on the vehicle being ordered, with the company listing estimated gas savings of $4,300 for the Model 3 and Model Y, $5,300 for the Model X, and $5,500 for the Model S. These may seem like optimistic estimates, but as it turns out, these figures are actually conservative, at least for the majority of the United States.
Tesla’s fuel savings estimate is based on the premise that charging an all-electric vehicle is a lot more affordable than filling up the tank of a petrol-powered car. Looking at the company’s estimates, it appears that the listed fuel savings for the Model S, 3, X, and Y are based on the assumption that drivers would drive their Tesla for 10,000 miles annually for a period of six years. The costs of charging a Tesla over this period is then compared to the estimated costs of refueling a comparable vehicle, such as a BMW, with premium gasoline.
This strategy actually makes sense, considering that the all-electric construction of a Tesla will likely allow the vehicle to be used for at least six years. The comparison with BMW’s vehicles is quite sound as well, seeing as both companies offer premium cars that perform and compete in the same segment. That being said, EV charging rate monitoring service Optiwatt noted in a recent report that Tesla’s estimated gas savings are a lot more nuanced than what the company’s online configurator would suggest.
If there is one area where Tesla could be faulted, it is in the way that its estimated fuel savings for the US are the same regardless of the state where the car is being purchased. Different states have different electricity and average fuel prices, which means that there are some places where Tesla drivers could save more than the company’s own estimates, and areas where the opposite will be accurate. Take Hawaii, for example. The state pays 32 cents per kWh of electricity, which is over three times higher than the 9 cents per kWh that are paid by residents in Oklahoma.
Fuel consumption varies across states as well, with drivers in rural areas consuming more petrol and drivers in high-density states like New York consuming less. Wyoming drivers buy the most gas per capita at 609 gallons per person per year, while New York purchases less than half at 292 gallons per person per year. Considering that Tesla’s fuel savings rely on the price discrepancy between electricity and gas, owners who drive more are more likely to meet the company’s fuel savings estimates compared to owners who drive less.
Optiwatt’s analysis notes that ultimately, there are some areas in the United States where owning a Tesla will save drivers far more than what the company’s estimates would suggest, and there are some areas where fuel savings will be underwhelming. Driving a Model Y in Rhode Island for 10,000 miles every year for six years will save owners about $4,235 in fuel costs, which is a bit less than the company’s $4,300 estimate. Driving the all-electric crossover in Wyoming for six years, on the other hand, will give owners fuel savings of $11,122, over two times the company’s estimates.
A look at Optiwatt’s data shows that Tesla’s newer vehicles like the Model 3 and Model Y are more likely to meet the company’s fuel savings estimates, despite the Model S and Model X’s free Supercharging capabilities. Yet on average, across Tesla’s vehicle lineup, it appears that Americans can expect to save about $2,500 more than the company’s estimated savings over a six-year period. This bodes well for electric cars and their economic appeal as a whole. After all, a Tesla is not just designed to run for 6 years. With the company’s million-mile batteries poised to be released soon, Tesla drivers over the years will likely see even more fuel savings for every electric car purchase.
Elon Musk
SpaceX issues statement on Starship V3 Booster 18 anomaly
The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX has issued an initial statement about Starship Booster 18’s anomaly early Friday. The incident unfolded during gas-system pressure testing at the company’s Massey facility in Starbase, Texas.
SpaceX’s initial comment
As per SpaceX in a post on its official account on social media platform X, Booster 18 was undergoing gas system pressure tests when the anomaly happened. Despite the nature of the incident, the company emphasized that no propellant was loaded, no engines were installed, and personnel were kept at a safe distance from the booster, resulting in zero injuries.
“Booster 18 suffered an anomaly during gas system pressure testing that we were conducting in advance of structural proof testing. No propellant was on the vehicle, and engines were not yet installed. The teams need time to investigate before we are confident of the cause. No one was injured as we maintain a safe distance for personnel during this type of testing. The site remains clear and we are working plans to safely reenter the site,” SpaceX wrote in its post on X.
Incident and aftermath
Livestream footage from LabPadre showed Booster 18’s lower half crumpling around the liquid oxygen tank area at approximately 4:04 a.m. CT. Subsequent images posted by on-site observers revealed extensive deformation across the booster’s lower structure. Needless to say, spaceflight observers have noted that Booster 18 would likely be a complete loss due to its anomaly.
Booster 18 had rolled out only a day earlier and was one of the first vehicles in the Starship V3 program. The V3 series incorporates structural reinforcements and reliability upgrades intended to prepare Starship for rapid-reuse testing and eventual tower-catch operations. Elon Musk has been optimistic about Starship V3, previously noting on X that the spacecraft might be able to complete initial missions to Mars.
Investor's Corner
Tesla analyst maintains $500 PT, says FSD drives better than humans now
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Tesla (NASDAQ:TSLA) received fresh support from Piper Sandler this week after analysts toured the Fremont Factory and tested the company’s latest Full Self-Driving software. The firm reaffirmed its $500 price target, stating that FSD V14 delivered a notably smooth robotaxi demonstration and may already perform at levels comparable to, if not better than, average human drivers.
The team also met with Tesla leaders for more than an hour to discuss autonomy, chip development, and upcoming deployment plans.
Analysts highlight autonomy progress
During more than 75 minutes of focused discussions, analysts reportedly focused on FSD v14’s updates. Piper Sandler’s team pointed to meaningful strides in perception, object handling, and overall ride smoothness during the robotaxi demo.
The visit also included discussions on updates to Tesla’s in-house chip initiatives, its Optimus program, and the growth of the company’s battery storage business. Analysts noted that Tesla continues refining cost structures and capital expenditure expectations, which are key elements in future margin recovery, as noted in a Yahoo Finance report.
Analyst Alexander Potter noted that “we think FSD is a truly impressive product that is (probably) already better at driving than the average American.” This conclusion was strengthened by what he described as a “flawless robotaxi ride to the hotel.”
Street targets diverge on TSLA
While Piper Sandler stands by its $500 target, it is not the highest estimate on the Street. Wedbush, for one, has a $600 per share price target for TSLA stock.
Other institutions have also weighed in on TSLA stock as of late. HSBC reiterated a Reduce rating with a $131 target, citing a gap between earnings fundamentals and the company’s market value. By contrast, TD Cowen maintained a Buy rating and a $509 target, pointing to strong autonomous driving demonstrations in Austin and the pace of software-driven improvements.
Stifel analysts also lifted their price target for Tesla to $508 per share over the company’s ongoing robotaxi and FSD programs.
Elon Musk
SpaceX Starship Version 3 booster crumples in early testing
Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
SpaceX’s new Starship first-stage booster, Booster 18, suffered major damage early Friday during its first round of testing in Starbase, Texas, just one day after rolling out of the factory.
Based on videos of the incident, the lower section of the rocket booster appeared to crumple during a pressurization test. Photos of the incident’s aftermath suggest that Booster 18 will likely be retired.
Booster test failure
SpaceX began structural and propellant-system verification tests on Booster 18 Thursday night at the Massey’s Test Site, only a few miles from Starbase’s production facilities, as noted in an Ars Technica report. At 4:04 a.m. CT on Friday, a livestream from LabPadre Space captured the booster’s lower half experiencing a sudden destructive event around its liquid oxygen tank section. Post-incident images, shared on X by @StarshipGazer, showed notable deformation in the booster’s lower structure.
Neither SpaceX nor Elon Musk had commented as of Friday morning, but the vehicle’s condition suggests it is likely a complete loss. This is quite unfortunate, as Booster 18 is already part of the Starship V3 program, which includes design fixes and upgrades intended to improve reliability. While SpaceX maintains a rather rapid Starship production line in Starbase, Booster 18 was generally expected to validate the improvements implemented in the V3 program.
Tight deadlines
SpaceX needs Starship boosters and upper stages to begin demonstrating rapid reuse, tower catches, and early operational Starlink missions over the next two years. More critically, NASA’s Artemis program depends on an on-orbit refueling test in the second half of 2026, a requirement for the vehicle’s expected crewed lunar landing around 2028.
While SpaceX is known for diagnosing failures quickly and returning to testing at unmatched speed, losing the newest-generation booster at the very start of its campaign highlights the immense challenge involved in scaling Starship into a reliable, high-cadence launch system. SpaceX, however, is known for getting things done quickly, so it would not be a surprise if the company manages to figure out what happened to Booster 18 in the near future.
SpaceX issues statement on Starship V3 Booster 18 anomaly
Tesla analyst maintains $500 PT, says FSD drives better than humans now
