- For the first time in nearly 18 months, the average price of a new electric car is lower than the average price of a Tesla
- Dealers are discounting used electric cars and offering incentives on new ones
- The average discount for an EV was 12.4% off the average transaction price in May, nearly six points lower than the industry average.
The average price of an electric vehicle has fallen over the past two months, while the rest of the industry is catching up with Tesla’s price cuts, Cox Automotive reports (via Car News).
The average EV transaction price across all brands (including Tesla) was $55,235 in April, or $433 less than Tesla’s average. According to Automotive News, this is the first time the industry average has fallen below Tesla’s since February 2023. In May, the industry average for EV transaction prices was $721 less than Tesla’s averageat $56,648.
Tesla Model Y 2024 – Powered by Tesla, Inc.
Tesla has cut prices several times over the past year, but other automakers now appear to be getting in on the action. average EV discount According to Cox, it was 12.4% of the average transaction price in May, nearly six points higher than the industry average.
Electric vehicle prices have fluctuated over the past six months, Cox noted. They stayed around $57,000 from December to February, dipped to $53,000 in March, but by May they were back to roughly where they were in December. However, the gap with Tesla has completely disappeared during that time. In December, the average price of an electric vehicle overall was $7,276 higher than the average Tesla, Cox said.
Hyundai Ioniq 5 2024
Discounts can be an acknowledgement of reality. Concerns about the cost of new electric vehicles is the root cause of the decline in consumer consideration, according to a J.D. Power study released in May. scarcity of affordable electric vehicles And narrowing access to the $7,500 federal EV tax credit because new regulations that came into effect at the beginning of the year didn’t help.
Cox also noted a Used electric car sales up 84% in May. That’s helped by the narrowing price gap with used gasoline-powered cars, which narrowed to $1,100 the week of May 6. Earlier this month, iSeeCars reported that, based on its survey of asking prices for used cars, used electric car prices actually stand under the price of internal combustion fuelLower used electric car prices could also pressure automakers to cut prices on their new electric models.
