Report: Average New EV Prices Fell Below Tesla's Average for the First Time in Over a Year

by Chris Teague

Published: July 2nd, 2024

report average new ev prices fell below tesla s average for the first time in over a

Despite saving owners some money on fuel, electric vehicles have remained more expensive than their gas counterparts. That’s changing slowly, as Cox Automotive recently reported that EV prices have fallen below the average Tesla price for the first time since early 2023.

While its vehicles aren’t “cheap,” Tesla offers two of the most affordable EVs on sale today. Including Tesla, the average EV transaction price reached $55,235 in April, $433 less than Tesla’s standalone average. In May, that gap widened to $721 below the average Tesla price, a significant shift considering the automaker’s outsized impact on average market prices.

The changes in average pricing can be attributed to a greater number of choices for buyers. Dealer supply also played a role, and automakers are offering more incentives for EVs than before. Buyers saw average discounts of 12.4 percent in May, six percent higher than the industry average.

Tesla is known for pricing adjustments as much as it is for anything else, so these numbers could look drastically different as time goes on. That said, more automakers, including General Motors, Volvo, and others, are pushing toward affordable EV models, which could impact the averages.

Buyers are also buying more used EVs than before as prices have fallen. Used EVs are typically $2,000-$3,000 less expensive than new models, but that’s still a significantly smaller savings number than used gas vehicles, which were almost $23,000 less expensive on average.

[Images: Kia, Hyundai, Ford]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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3 of 21 comments

VoGhost 2 days ago
I'm having trouble processing this phrase: "Used EVs are typically $2,000-$3,000 less expensive than new models, but that’s still a significantly smaller savings number than used gas vehicles, which were almost $23,000 less expensive on average."

1 Reply
- El scotto 2 days ago
  Most who thought about EVs have bought them. Sadly when EV owners post on here they receive, ahem, considerable backlash. I think we're at a point where EV sales will make up "X" amount of the car market every year. I think Chris meant all EVs vs all ICEs for pricing. EV's ain't cheap and that doesn't help them sell for basically what will be a second car.
  
  2
Daniel 2 days ago
Seriously, prices are falling with manufacturers finally making them cheaper and better battery tech too. I got my $60k sticker EV6 GT Line on lease at $40k and absolutely love it! I came from 30+ years of modding/tuning and I'm impressed! The future is bright with EV's!

3 Reply

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