- Average EV prices in the U.S. went down 1.5% compared to last year.
- Tesla, the biggest player in the EV game, saw its average prices go up.
The average transaction price (ATP) for new electric cars in the United States was $56,520 in July, according to Kelley Blue Book. That’s slightly higher than the previous month, but still 1.5% lower year-over-year.
Compared to the industry average of $48,401, EVs were over $8,000 more expensive last month, but data from BloombergNEF and the Department of Energy predicts battery-powered cars will be cheaper and cheaper in the coming months and years because of the rapid decline in the price of lithium, the main material needed for lithium-ion batteries.
The industry average went down just $23 compared to June and $106 year-over-year.
Kelley Blue Book said that the average incentive package offered with a new EV last month was over 12% of the transaction price, making it the highest level in more than three years and roughly twice the level recorded in July 2023. Compared to the industry average, EV incentives were 74% higher in July.
“The thing about the U.S. is its diversity, and that goes for the U.S. auto market as well,” said Erin Keating, executive analyst at Cox Automotive. “There are many expensive, high-profile vehicles out there, but consumers have many good options priced well below the industry average. We hear this from the large dealers all the time: No matter the budget, chances are we can make something work. This is particularly true where inventory is higher, and incentives are following.”
Tesla, the biggest player in the EV game, saw average transaction prices increase by 11% year-over-year, reaching $59,593–the highest point since February. This is due in part to the popularity of the Cybertruck, which is currently the best-selling vehicle in the U.S. priced over $100,000.
A bigger role in the increasing transaction prices at Tesla was played by the best-selling Model 3 and Model Y. In the case of the Model 3, its July ATP was $53,878, while the Model Y sold for an average of $52,055.
