Tesla is Getting Less Efficient, While Toyota Keeps Improving: Study
Over the past few years, new cars have quietly gotten more efficient, and not just by accident. Through a study by the EPA, looking at manufacturer trends over the last five years gives a much clearer picture of what’s really going on rather than focusing on any single model year. That window lines up neatly with a typical vehicle redesign cycle, meaning most models have been updated at least once. The result is a more realistic snapshot of how automakers are actually improving fuel economy—through a mix of better engineering and changes in what they’re building and selling.
Seen through that lens, the trend is hard to miss. Thirteen of the 14 largest manufacturers selling vehicles in the U.S. improved their estimated real-world fuel economy between model years 2019 and 2024. Toyota led the pack with a 3.3 mpg increase, edging out BMW, which improved by 2.8 mpg, and Mercedes-Benz, which gained 2.4 mpg over the same period.
The one notable outlier was Tesla. Despite being synonymous with efficiency, Tesla’s average fuel economy actually declined over the five-year span. The reason isn’t less efficient vehicles, but rather a shift in production toward larger, heavier car-based SUVs. Even so, Tesla still dominates when you look at a single model year. In 2024, its all-electric lineup posted an estimated 117.1 mpg-equivalent, far ahead of every other large manufacturer.
Behind Tesla in 2024 were some familiar names. Honda came next at 31.0 mpg, followed by Hyundai at 29.8 mpg and Kia at 29.2 mpg. At the other end of the scale, Stellantis posted the lowest average fuel economy among large manufacturers at 22.8 mpg, with General Motors close behind at 22.9 mpg and Ford at 23.4 mpg.
Electrification plays a major role in these gains, but its impact isn’t evenly distributed. Battery-electric vehicles and plug-in hybrids helped lift overall averages for nearly every manufacturer between 2019 and 2024. When those vehicles are taken out of the equation, the picture changes. BMW, for example, shows a strong overall improvement, but actually posts a slight decrease in fuel economy once BEVs and PHEVs are excluded. In fact, seven manufacturers that improved on paper end up going backward without their electrified models.
Toyota stands apart here as well. Its fuel economy gains hold up whether electrified vehicles are included or not, thanks in part to increased production of strong hybrid models. It’s a reminder that while full electrification grabs the headlines, steady gains can still come from refining conventional powertrains and leaning harder into hybrids.
In short, fuel economy is improving across the industry—but how manufacturers are getting there matters just as much as the final numbers. Some are leaning heavily on electrification, others are squeezing more efficiency out of hybrids and traditional designs, and a few are juggling both while reshaping their entire lineup.
This article was co-written using AI and was then heavily edited and optimized by our editorial team.
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How can Tesla's fuel economy decline when it doesn't even use fuel? Batteries are not a fuel by definition.
I STILL havent seen even 1 new Prius, while in the '60s i saw new Amer car body styles on the road all over the place within a matter of just a few weeks. Unbelievable.