Electric vehicle prices continue to go down. According to Kelley Blue Book’s latest average transaction price (ATP) report, a new EV sold in the United States in April had an average price of $55,252.
That’s 8.5% less year over year and almost flat compared to March 2024–up only $75 or roughly 0.1%. At the same time, however, the average price of new vehicles (including combustion models, plug-in hybrids and everything in between) went up 2.2% year over year after three months of steady decline.
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EVs are still more expensive than the industry average
Despite experiencing considerable price drops in the last few years, electric vehicle prices are still roughly $7,000 more expensive than the industry average, according to data from Kelley Blue Book. This could change soon, as Ford and other carmakers are eyeing more affordable models to capture the attention of American buyers.
Compared to last year, there were some big price drops for some of the biggest players in the EV game in April. The Ford F-150 Lightning saw average prices go down 23%. Ford Mustang Mach-E prices dropped 15% on average and the Tesla Model Y saw average transaction prices decrease 12%. The Hyundai Ioniq 6 became 10% cheaper. These are the outliers, though, as most EVs today are being sold for roughly 4-to-5% less than a year ago.
Besides prices decreasing steadily, EVs also benefit from above-average incentive packages that hover around 15% to 20% in many cases–these are your federal tax credits, dealer discounts and regional incentives.
Compared to the average transaction prices of new vehicles, which went up compared to March but are down 0.5% year over year, EVs are still almost $7,000 more expensive. The industry average was $48,510, while luxury brand prices reached an average of $64,076 in April. Prices of non-luxury vehicles rose to $44,989 last month, a 2.1% increase month over month.
