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

Chris Teague
by Chris Teague

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 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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4 of 23 comments
  • VoGhost VoGhost on Jul 02, 2024
    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."
    • See 1 previous
    • Joey21 Joey21 6 days ago
      I don't know. When we bought our 3 year old EV, it was just about 50% off new. We're less concerned about depreciation b/c we have traditionally driven the doors off our cars. This EV replaces a 25 year old CRV that our eldest continues to drive with no problems. I plan to drive this EV at least until retirement in a decade or so. If the range continues to be good enough, I'll just keep driving it. It serves its purpose well and does what I ask of it. Comfortable, etc. Zero problems. The way I use it - the car returns about 4.5 miles per KWH. When we drive it long distance, the numbers are lower but we don't make long distance trips in it that often. If we are traveling we take our V6 SUV more often b/c more passengers, more space. Will replace that SUV someday with a BEV too unless I can buy a EREV with a drivetrain like the BMW i3. Mostly EV, with gas backup.
  • Daniel Daniel on Jul 02, 2024
    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!
  • VoGhost Fantastic work by Honda design. When I first saw the pictures, I thought "Is that a second gen Acura NSX?"
  • V16 2025 VW GLI...or 2025 Honda Civic SI? Same target audience, similar price points. Both are rays of sun in the gray world of SUV'S.
  • FreedMike Said this before and I'll say it again: I'm not that exercised about this whole "pay for a subscription" thing, as long as the deal's reasonable. And here's how you make it reasonable: offer it a monthly charge. Let's say that adaptive headlights are a $500 option on this vehicle, and the subscription is $15 a month, or $540 over a three year lease. So you try the feature for a month, and if you like it, you keep it; if you don't, then you discontinue it, like a Netflix subscription. In any case, you didn't get charged $500 up front the feature. That's not a bad deal.In my case, let's say VW offers an over the air chip reflash that gives me another 25 hp. The total price of the upgrade is $1,000 (which is what a reflash would cost you in the aftermarket). If they offered me a one time monthly subscription for $50 to try it out, I'd take it. In other words, maybe the news isn't all bad.
  • 2ACL A good car, but - at least in this configuration -not one that should command a premium. Its qualities just aren't as enduring as those of Honda's contemporary sports cars. For better or worse, this is a formula they remain able to replicate.
  • Jalop1991 I just read that Tesla's profits are WAY down "as the electric vehicle company has faced both more EV competition from established automakers and a slowing of overall EV sales growth." This Cadillac wouldn't help Tesla at all, but the slowing market of EV sales overall means this should be a halo/boutique car. Regardless, yes, they should make it.