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]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by subscribing to our newsletter.

#Teslaprices #newevprices #usedevprices

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.

More by Chris Teague

Comments

Join the conversation

4 of 23 comments

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."

1 Reply
- See 1 previous
- El scotto on Jul 02, 2024
  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
- Joey21 on Jul 17, 2024
  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.
  
  Like
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!

3 Reply

Recent Comments

SCE to AUX The best part of the Rivian R2 reveal was the surprise R3/R3, and the fact that there were zero spy photos of them to leak the news ahead of time.
Kcflyer On the upside, this may finally bankrupt the USPS and put it out of business saving people who actually work for a living lots of money. But most likely this Dem boondoggle will just result in more billions to "rescue" the USPS from this gift to a favored defense contractor and their beltway supporters.
ToolGuy Subaru encourages customers to get outside and explore the outdoors. VW helps customers get outside the vehicle, on turns.
ToolGuy The last time I was talking with Carlos Tavares.... no, I'm kidding. We only ever had one conversation.
ToolGuy Guest was fairly interesting; conclusions slightly depressing.