Average Price Of New EVs Drops By Almost $15,000 In A Year: KBB

New electric vehicles sold in the United States have become less expensive in the last 12 months, according to Kelley Blue Book’s latest report, with the average transaction price (ATP) of a new EV going down more than 22 percent in September compared with the same month last year.

Tesla played a big role in lowering new EV prices thanks to its aggressive strategy that saw multiple MSRP cuts in the last year, combined with the fact that Tesla-branded vehicles rule the EV landscape in America.

As a result, the average transaction price of a new EV in the US last month was $50,683, down from last year’s ATP of $65,295, with incentives representing $4,991 or 9.8 percent of the final figure. Compared to August, EVs have become more affordable on average by $1,529.

At the same time, the availability of electric vehicles, as measured by days’ supply, has remained well above the industry average at 97 days at the start of October, compared to internal combustion engine (ICE) vehicles that saw between 52 and 58 days of supply in the last year.

This is because more and more electric models are becoming available and production for newcomers is ramping up, leading to a more diverse offer.

“EV sales continue to grow in the US, partly due to strong supply and more choice,” said Stephanie Valdez-Streaty, director of Industry Insights at Cox Automotive. “At last check, we had 15 new EV models for sale that were not available a year earlier. Better choices and more options are helping push prices lower and drive higher sales.”

In general, when looking at the complete automotive landscape, the average transaction price for a new car in the US has gone down by 0.7 percent last month compared to the previous year, reaching $47,899.

Tesla, which is described by KBB as the luxury market leader, saw the ATP of its EVs go down by 24.7 percent in the last year, undercutting Acura, Lexus, Infiniti, and Volvo. Prices for the Model 3, for example, have gone down by more than 26 percent to $41,484.

Names like Audi and Porsche increased the prices of their models by more than 8 percent on average in the last 12 months, while Mercedes-Benz ATPs went up more than 10 percent. Non-luxury vehicle prices also went up to $44,626, an increase of 1 percent compared to September 2022.

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Source: Kelley Blue Book

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