EV prices fall again – and the gap with gas cars shrinks to $6,500

EV prices edged down in February, while gas-powered car prices crept up, narrowing the gap between the two, according to new estimates from Kelley Blue Book.

The average transaction price (ATP) for a new EV in February was $55,300. That’s down 1.4% year-over-year and 0.6% lower than in January.

As a result, the price gap between EVs and ICE vehicles narrowed to around $6,500, one of the smallest gaps on record.

Automakers boost incentives

Automakers leaned harder on incentives to move EVs in February. The average EV incentive package rose from 12.4% of the vehicle’s transaction price to 14.2%.

That’s more than double the incentives offered across the overall auto market, showing that automakers and dealers are still using aggressive discounts to keep EV sales moving.

Tesla prices rise, but sales slip

Tesla, still the leading EV automaker in the US, moved in the opposite direction on pricing.

Tesla’s average transaction price rose to $53,821 in February, up 3% year-over-year.

But sales declined. Kelley Blue Book estimates Tesla sold about 38,500 vehicles in February, down 8.9% year-over-year. It was Tesla’s lowest monthly sales figure since late 2021.

Even so, Tesla still outperformed the broader EV segment. Overall EV sales fell by about 26% year-over-year in February, according to estimates.

Read more: Tesla pushed EV prices lower in January, but sales kept sliding

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