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Led by Tesla, US EV prices dropped by 13% year-over-year in February

EV prices dropped by nearly 13% year-over-year in February, led in part by Tesla Model 3 and Model Y price drops, reports Kelley Blue Book.

According to newly revised EV transaction price data, the average price paid for an EV in February was $52,314, down from a revised $54,863 in January, according to Cox Automotive and Kelley Blue Book estimates.

EV transaction prices in February were lower year-over-year by 12.8%, an accelerating decline compared to January, when prices were lower year-over-year by 11.6%.

The market’s general EV price decline has been led in part by the Tesla Model 3 and Model Y, the two most popular EVs in the US.

Transaction prices for the Model Y last month, estimated at $49,363, were the lowest on record and were lower versus February 2023 by 16.2%.

Model 3 transaction prices last month, at $43,614, were lower year-over-year by 12% and near the lowest level on record.

High incentives and discounts on most EV models also continue to play a significant role in lower EV prices – for example, Polestar’s incentive package was over 10% of average transaction price, according to Kelley Blue Book estimates.

Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, noted that “while the higher inventory levels and increased competition continue to drive down the price premium of EVs, it’s important to acknowledge that EVs remain priced above mainstream non-luxury vehicles by nearly 19%.”

Read more: 1 in 5 new car sales globally were EVs in 2023, and that’s curbed oil demand – IEA


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Avatar for Michelle Lewis Michelle Lewis

Michelle Lewis is a writer and editor on Electrek and an editor on DroneDJ, 9to5Mac, and 9to5Google. She lives in White River Junction, Vermont. She has previously worked for Fast Company, the Guardian, News Deeply, Time, and others. Message Michelle on Twitter or at michelle@9to5mac.com. Check out her personal blog.


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