Kelley Blue Book reports a significant drop in electric vehicle (EV) prices, with the average price paid for an EV in February falling to $52,314, down from $54,863 in January, according to Cox Automotive and Kelley Blue Book estimates.
Compared to the same period last year, EV transaction prices in February decreased by 12.8%, a more pronounced decline than the 11.6% drop seen in January.
The decline in EV prices is attributed in part to price reductions in popular models like the Tesla Model 3 and Model Y, which are among the most popular EVs in the US.
Transaction prices for the Model Y hit a record low of $49,363 last month, marking a 16.2% decrease compared to February 2023. Similarly, Model 3 transaction prices in February were $43,614, down 12% year-over-year and close to the lowest level on record.
High incentives and discounts on many EV models have also contributed to the decline in prices. For example, Polestar’s incentive package accounted for over 10% of the average transaction price, according to Kelley Blue Book estimates.
Stephanie Valdez Streaty, Director of Industry Insights at Cox Automotive, noted that while increased inventory and competition have driven down the price premium of EVs, EVs still remain priced nearly 19% above mainstream non-luxury vehicles.
