In the luxury segment, EVs such as the Porsche Taycan or the Tesla Model X, when charged mostly at home, are the most economical to fuel
East Lansing, Mich.—The financial landscape of vehicle ownership is rapidly evolving, particularly with the rise of electric vehicles (EVs). Recently, the Anderson Economic Group (AEG) released its fueling cost estimates for various internal combustion engine (ICE) vehicles and EVs for the third quarter of 2025. This study highlights the real-world financial implications for American households as they weigh the option between gasoline-powered vehicles and battery electric vehicles.
Since 2021, AEG has been providing quarterly cost comparisons, meticulously examining the same categories of fueling costs for both vehicle types. This includes energy prices, excise taxes, and the costs associated with fueling stations, whether they be gas stations or electric charging stations. The data spans entry-level, mid-priced, and luxury vehicles, along with pickup trucks, all based on a standard annual driving distance of 12,000 miles.
To account for regional cost variations, AEG included calculations from Michigan—its benchmark state—alongside New York and California, reflecting differing state taxes and energy costs that impact fueling expenses.
Summary Results for Q3 2025
AEG’s findings for Q3 2025 shed light on significant trends:
- For the most popular vehicle segments—mid-priced cars, crossovers, and pickup trucks—drivers saved between $6 and $10 per 100 purposeful miles by choosing traditional ICE vehicles over battery-electric models. For instance, an entry-level ICE vehicle driver incurs around $9.10 in fueling costs to cover 100 miles, while the same distance for an EV driver charging mostly at home would cost approximately $13.40. Relying on commercial chargers escalates costs even further to about $16.16.
- Across the states of Michigan, New York, and California, luxury ICE vehicle drivers experienced lower cost savings compared to those driving luxury EVs that utilized commercial charging.
- In all three states, luxury vehicle drivers generally found EVs to be more economical if they charge predominantly at home. This trend likely correlates with the fact that many luxury vehicle owners also own homes, facilitating the installation of home charging stations.
- California’s elevated prices for electricity and gasoline lessen the cost advantage for mid-priced ICE drivers compared to those using home charging for their EVs.
- In terms of pickup trucks, the cost of relying on an EV was significantly higher. Pickup truck drivers often utilize commercial charging, which tends to be more expensive, leading to elevated fueling costs for electric models.
- Drivers in New York exhibited cost similarities to those in Michigan. Traditionally, entry-level and mid-priced ICE vehicles were still less expensive to fuel in comparison to EVs.
Detailed Findings: Michigan
Michigan serves as a benchmark for AEG’s fueling cost evaluations due to its representative fuel taxes, electricity rates, and gasoline prices.
Entry-priced cars and crossovers in Michigan: Gas-powered models like the VW Jetta and Hyundai Elantra continue to maintain a financial edge, averaging $9.10 per 100 purposeful miles. Conversely, entry-priced EVs, such as the Nissan Leaf or Chevy Bolt charging primarily at home, average $13.40. Charging at commercial stations drives this cost up to about $16.16.
Mid-priced cars and crossovers in Michigan: Vehicles like the Chevy Malibu and Nissan Altima remain more economical as well, costing around $10.31 for 100 miles. EVs in this category, including Tesla Models 3 and Y, average $13.47 for home charging and $16.29 for commercial utilization.
Luxury-priced cars and crossovers in Michigan: Here, electric vehicles such as the Porsche Taycan and Tesla Model X shine. When charged at home, they incur about $14.43 per 100 miles, whereas comparable ICE cars, like the BMW 5 Series and Cadillac CTS, cost around $17.20. However, for those relying on commercial charging, the figure for luxury EVs jumps to $17.98, which is slightly more than the ICE equivalents.
Pickup trucks in Michigan: Traditional trucks like the Ford F Series or GMC Sierra register around $16.36 per 100 miles, making them slightly cheaper to fuel than electric counterparts at $18.98. Notably, electric pickups such as the Ford F-150 Lightning, relying primarily on commercial charging, result in costs of approximately $26.39, which surpasses traditional ICE models by nearly $10.
Detailed Findings: California and New York
The findings for California and New York demonstrate similar trends, adjusted for local energy prices and taxes:
Entry-priced cars and crossovers: In both states, gas-powered vehicles maintain a cost advantage. New York drivers see a differential of $4.67 to $7.61, depending on charging practices, while California drivers experience a range of $3.76 to $6.77.
Mid-priced cars and crossovers: The story is much the same. In New York, mid-priced ICE vehicles cost around $10.58 per 100 miles, which is cheaper than EVs at $14.10 for home charging and $17.10 for commercial. Even in California, ICE vehicles edge out their electric counterparts by a narrow margin.
Luxury-priced cars and crossovers: A different narrative emerges in the luxury segment. In New York, electric vehicles charged at home average around $15.28 per 100 miles, in contrast to the $17.12 for ICE vehicles. California luxury EV drivers see even greater savings, paying $18.33 for home charging compared to $20.70 for ICE fueling costs. Those relying on commercial tariffs pay just $1.44 more than the ICE costs.
Pickup trucks: In New York, EV pickup drivers face higher costs ($20.90) relative to traditional ICE counterparts ($16.79). California reveals a similar scenario, with ICE models being less expensive to fuel, while electric pickups relying on commercial charging see significant cost increases at about $32.45.