Mileage reimbursement goes beyond just covering gas costs (or electricity). It also serves to cover depreciation and wear and tear. If the Tesla is leased, any additional miles will incur a $0.25 per mile charge. Mileage lowers a car's value even if it's not leased.

Your employee doesn't handle money well. He is simply considering the fuel used, disregarding expenditures like depreciation and wear & tear. Don't fall for the trick; you reimburse all of your employees at the same rate regardless of the vehicle they use.

Mileage reimbursement goes beyond just covering gas costs (or electricity). It also serves to cover depreciation and wear and tear. If the Tesla is leased, any additional miles will incur a $0.25 per mile charge. Mileage lowers a car's value even if it's not leased.

Your employee doesn't handle money well. He is simply considering the fuel used, disregarding expenditures like depreciation and wear & tear. Don't fall for the trick; you reimburse all of your employees at the same rate regardless of the vehicle they use.