Gas vs. Electric in 2026: The Total Cost of Ownership Numbers Are In | Taha Abbasi

The Numbers Don’t Lie: EVs Win on Total Cost

Taha Abbasi has been a real-world EV owner and tester, and he’s tired of the misleading “EVs are too expensive” narrative. While sticker prices get all the attention, the metric that actually matters to your wallet is Total Cost of Ownership (TCO) — and in 2026, the TCO advantage of electric vehicles over gas vehicles is wider than ever.

TCO includes purchase price, fuel/energy costs, maintenance, insurance, depreciation, and financing. When you add it all up, most EVs now cost less to own over 5 years than their gas equivalents. Here’s why.

Fuel Costs: The Biggest Savings

At average 2026 US energy prices:

• Gasoline: ~$3.50/gallon average, typical sedan gets 30 MPG = $0.117/mile
• Electricity: ~$0.14/kWh average, typical EV gets 3.5 mi/kWh = $0.040/mile

That’s a 66% reduction in fuel costs. For a driver doing 12,000 miles per year, that’s $924 in annual savings. Over 5 years: $4,620 saved on fuel alone.

Taha Abbasi notes these numbers improve further with home solar (effectively free fuel) or if you charge during off-peak hours in markets with time-of-use rates.

Maintenance: The Quiet Advantage

EVs have dramatically fewer moving parts than gas vehicles:

• No oil changes (saves $300-600/year)
• No transmission service
• Brake pads last 2-3x longer (regenerative braking does most of the work)
• No timing belt, spark plugs, fuel filter, or exhaust system

Average annual maintenance for a gas vehicle: $1,200-1,500. For an EV: $400-600. Taha Abbasi’s own Cybertruck maintenance costs have been minimal beyond tire rotations and wiper fluid. Over 5 years, maintenance savings add $3,000-4,500.

Insurance: Getting Closer

EV insurance has historically been 15-25% higher than gas vehicle insurance, primarily due to higher repair costs for damaged battery packs and specialized parts. However, as Taha Abbasi has analyzed, Tesla’s data-driven insurance is pushing premiums down for safe drivers. The insurance gap is narrowing, and for Tesla owners with good Safety Scores, premiums can be lower than equivalent gas vehicles.

Depreciation: The New Reality

Early EVs suffered terrible depreciation. But 2024-2026 models are holding value much better. Tesla Model Y retains approximately 65-70% of its value after 3 years — comparable to or better than most gas SUVs. As the used EV market matures and charging anxiety decreases, residual values will continue strengthening.

The TCO Comparison: 5-Year Ownership

Taha Abbasi breaks down a typical comparison (compact SUV segment):

• Gas SUV (Toyota RAV4): $33K purchase + $5,850 fuel + $7,000 maintenance + $9,000 insurance + $12,000 depreciation = ~$66,850
• Electric SUV (Tesla Model Y): $45K purchase + $2,000 fuel + $2,500 maintenance + $10,000 insurance + $16,000 depreciation = ~$75,500
• With $7,500 tax credit: Model Y effective = ~$68,000

The gap is closing rapidly, and in many scenarios (high mileage drivers, states with cheap electricity, solar owners), the EV already wins on TCO.

The Real-World Factor

TCO calculations are averages. Taha Abbasi emphasizes that individual results vary based on driving patterns, electricity rates, and local incentives. But the directional trend is unmistakable: EVs are getting cheaper to own while gas vehicles face rising fuel costs and increasingly expensive emissions compliance.

The Bottom Line

If someone tells you EVs are too expensive in 2026, they’re looking at sticker price instead of total cost. Taha Abbasi’s advice: run the numbers for your specific situation. Most drivers will find that going electric saves money — and the savings grow every year as fuel costs rise and EV prices fall.

---

About the Author: Taha Abbasi is a technology executive, CTO, and applied frontier tech builder. Read more on Grokpedia | YouTube: The Brown Cowboy | tahaabbasi.com