The average selling price of new electric vehicles in the United States continues to go down month after month, reaching the $53,438 mark in June, which equates to a 20 percent drop compared to last year, according to Kelley Blue Book.
In May, the revised average transaction price (ATP) for EVs was $54,528, while in January it was recorded at more than $61,000. In June 2022, the ATP for new all-electric vehicles sold in the US was $66,390. In other words, the average price of EVs went down by nearly $13,000 in one year.
Cox Automotive, the company behind Kelley Blue Book, notes that Tesla – as the EV market leader in America – was the main factor behind the price lowering. Another factor is represented by the inventory increases experienced by some automakers this year, with the EV category being well above the overall industry average when it comes to the number of days new cars sit on dealer lots before being bought.
As we previously reported, the EV segment days’ supply was 103 days, so just over three months, while the industry days’ supply stood at 53.
“The steep drop in average EV prices this year, led by Tesla price cuts, has been a key driver of overall, industry-wide price moderation,” said Michelle Krebs, executive analyst at Cox Automotive. “A year ago, the average EV price was above the average luxury vehicle price. Today, as inventory and availability build, EV prices are moving closer to the industry average.”
Incentives offered by manufacturers also increased in June and reached the highest point in a year, averaging $2,048 and representing 4.2 percent of the average transaction price, an increase of 0.2 points compared to May.
As a whole, the American car market saw a slight ATP increase of 1.6 percent last month, compared to last year, reaching $48,808. Kelley Blue Book notes that this is the smallest year-over-year price increase since the start of the global pandemic, going up by just 0.3 points ($150) from an upwardly revised May reading of $48,658.
At the same time, compared to the beginning of the year, transaction prices are down 1.7 percent ($865), the largest January to June decline in the past decade.
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