EVs cost less than a year ago, but September brought a setback

New EVs still cost less than they did a year ago, but September brought buyers a double hit: higher prices and smaller discounts.

The average transaction price (ATP) paid for a new EV in the US rose to $55,879 in September, according to Kelley Blue Book, a Cox Automotive brand. That’s up about 2.4% from August’s downwardly revised average of $54,574.

Compared with September last year, though, EV prices were down 3%. Kelley Blue Book says a stronger mix of more affordable models helped lower the average.

So the longer-term picture is improving, even if September wasn’t a great month for bargain hunters.

The price premium for an EV over what Kelley Blue Book calls an “ICE+” model was 11% in September. That gap has stayed near 11% throughout 2026, down from an average of nearly 18% in 2025.

EV discounts are shrinking

Automakers also pulled back on EV incentives. Discounts averaged 11% of the ATP in September – their lowest level this year and down from 14.2% a year earlier. (September 2025 was the last month before the $7,500 federal tax credit expired, so there were some great incentives on the table.)

At September’s average EV price, that works out to roughly $6,147 in incentives. That’s an industry average, so the actual offer will depend on the vehicle you’re shopping for. (The Polestar 4, pictured above, has a rebate of up to $25,000 off its MSRP of $56,400 to $57,800, until November 2.)

Across the broader new-vehicle market, average transaction prices rose for the fourth consecutive month.

Tesla prices rose as well

Tesla’s ATP increased 3.3% month over month to $54,345 in September. Year over year, it barely changed, up 0.4%.

The Model 3 and Model Y accounted for nearly 97% of Tesla’s sales. Buyers paid an average of $53,804 for the Model 3 and $53,052 for the Model Y.

Nearly 1,500 Cybertrucks sold in September, with an average transaction price of $98,109.

For EV shoppers, the gap with ICE vehicles has narrowed considerably since 2025. But September’s higher prices and smaller incentives show that cheaper EV prices aren’t arriving in a straightforward way.

Read more: EV prices are falling while the average new car tops $50K

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