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.
Energy
Tesla and Samsung SDI in talks over new US battery storage deal: report
The update was related by industry sources and initially reported by South Korean news outlets.
Recent reports have suggested that Tesla and Samsung SDI are in talks over a potential partnership to supply batteries for large-scale energy storage systems (ESS).
The update was related by industry sources and initially reported by South Korean news outlets.
ESS batteries to be built at Samsung’s Indiana plant
As noted in a report from Korea JoongAng Daily, the demand for energy storage systems has been growing rapidly in North America, thanks in no small part to the surge in AI investments across numerous companies. With this in mind, Tesla has reportedly approached Samsung SDI about a potential battery supply deal.
The deal is reportedly worth over 3 trillion Korean won (approximately $2.11 billion) and will span three years, according to The Korea Global Economic Daily. A battery supply deal with Samsung SDI could make sense for Tesla as the company already has a grid-scale battery, the Megapack, which is perfect for industrial use. Samsung SDI could simply supply cells for the EV maker.
Production of the batteries would reportedly take place at Samsung SDI’s joint venture factory with Stellantis in Indiana, which is currently under construction. Samsung SDI recently announced plans to use part of that plant’s EV lines to produce cells for ESS, with a targeted capacity of 30 GWh by the end of next year.
Tesla and Samsung’s partnership
At present, only a handful of manufacturers, including Korea’s LG Energy Solution, Samsung SDI, SK On, and Japan’s Panasonic, are capable of producing energy storage-scale batteries domestically in the United States. A Samsung SDI official issued a comment about the matter, stating, “Nothing has been finalized regarding cooperation with Tesla.”
The possible energy storage system deal adds another layer to Tesla’s growing collaboration with Samsung, which is already in line as a partner in the upcoming production of Tesla’s AI5 and AI6 chips. Early sample manufacturing of the AI6 is expected to begin in South Korea, with mass production slated for Samsung’s Texas-based Taylor foundry when it starts operations.
The AI6 chip will power Tesla’s next wave of high-volume projects, including the Optimus humanoid robot and the autonomous Cybercab service. Musk has called the partnership with Samsung a “real collaboration,” adding that he personally plans to “walk the line” at the Taylor facility to speed up progress.
Energy
Tesla VP hints at Solar Roof comeback with Giga New York push
The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.
Tesla’s long-awaited and way underrated Solar Roof may finally be getting its moment. During the company’s Q3 2025 earnings call, Vice President of Energy Engineering Michael Snyder revealed that production of a new residential solar panel has started at Tesla’s Buffalo, New York facility, with shipments to customers beginning in the first quarter of 2026.
The comments hint at possible renewed life for the Solar Roof program, which has seen years of slow growth since its 2016 unveiling.
Tesla Energy’s strong demand
Responding to an investor question about Tesla’s energy backlog, Snyder said demand for Megapack and Powerwall continues to be “really strong” into next year. He also noted positive customer feedback for the company’s new Megablock product, which is expected to start shipping from Houston in 2026.
“We’re seeing remarkable growth in the demand for AI and data center applications as hyperscalers and utilities have seen the versatility of the Megapack product. It increases reliability and relieves grid constraints,” he said.
Snyder also highlighted a “surge in residential solar demand in the US,” attributing the spike to recent policy changes that incentivize home installations. Tesla expects this trend to continue into 2026, helped by the rollout of a new solar lease product that makes adoption more affordable for homeowners.
Possible Solar Roof revival?
Perhaps the most intriguing part of Snyder’s remarks, however, was Tesla’s move to begin production of its “residential solar panel” in Buffalo, New York. He described the new panels as having “industry-leading aesthetics” and shape performance, language Tesla has used to market its Solar Roof tiles in the past.
“We also began production of our Tesla residential solar panel in our Buffalo factory, and we will be shipping that to customers starting Q1. The panel has industry-leading aesthetics and shape performance and demonstrates our continued commitment to US manufacturing,” Snyder said during the Q3 2025 earnings call.
Snyder did not explicitly name the product, though his reference to aesthetics has fueled speculation that Tesla may finally be preparing a large-scale and serious rollout of its Solar Roof line.
Originally unveiled in 2016, the Solar Roof was intended to transform rooftops into clean energy generators without compromising on design. However, despite early enthusiasm, production and installation volumes have remained limited for years. In 2023, a report from Wood Mackenzie claimed that there were only 3,000 operational Solar Roof installations across the United States at the time, far below forecasts. In response, the official Tesla Energy account on X stated that the report was “incorrect by a large margin.”
Energy
Tesla China’s Megafactory helps boost Shanghai’s battery exports by 20%: report
Located in the Lingang New Area of the Shanghai Free Trade Zone, the Tesla Megafactory has been running at full throttle since opening in February.
Reports from China have indicated that the Tesla Shanghai Megafactory has become a notable player in China’s booming battery export market.
Located in the Lingang New Area of the Shanghai Free Trade Zone, the Tesla Megafactory has been running at full throttle since opening in February. It produces Tesla Megapack batteries for domestic and international use.
Tesla Shanghai Megafactory
As noted in a report from Sina Finance, the Tesla Shanghai Megafactory’s output of Megapack batteries helped drive a notable rise in lithium battery shipments from the city in the first three quarters of 2025. This is quite impressive as the Megafactory is a rather young facility, though it has been steadily increasing its production capacity.
“The establishment of this benchmark factory has not only driven the rapid development of Shanghai’s energy storage industry but also become a new growth engine for foreign trade exports. Driven by the Tesla energy storage factory’s opening, Shanghai’s lithium battery exports reached 32.15 billion yuan ($4.5 billion) in the first three quarters, a 20.7% increase,” the publication wrote.
Ultimately, the Shanghai Megafactory has proved helpful to the city’s “new three” industries, which are comprised of new energy vehicles, lithium batteries, and photovoltaic systems. Exports of the “new three” products reached 112.17 billion yuan ($15.7 billion), a 6.3% year-over-year increase during the same period. The city’s total trade volume grew 5.4% year-over-year as well, with exports up 11.3%, driven largely by the clean energy sector’s performance.
Energy storage is helping Shanghai
Since opening in February, the Shanghai Megafactory has been firing on all cylinders. In late July, Tesla Energy announced that the new battery factory has successfully produced its 1,000th Megapack unit. That’s quite impressive for a facility that, at the time, had only been operational for less than six months.
Speed has always been a trademark of the Shanghai Megafactory. Similar to Tesla’s other key facilities in China, the Megafactory was constructed quickly. The facility started its construction on May 23, 2024. Less than a year later, the site officially started producing Megapack batteries. By late March 2025, Tesla China noted that it had shipped the first batch of Megapack batteries from the Shanghai plant to foreign markets.
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