Tesla’s average transaction prices increased in March, even as the company recorded another quarter of declining sales, according to the latest data from Kelley Blue Book, part of Cox Automotive.
The average transaction price for Tesla vehicles reached an estimated $54,582 in March, marking a 3.5% increase from the previous year and a slight rise from February. Prices for both the Model 3 and Model Y were higher on a monthly and annual basis.
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Despite the price gains, Tesla’s first-quarter sales in 2025 were estimated to have declined by more than 8% compared to the same period in 2024. The drop follows a broader downward trend that began after Tesla’s deliveries peaked in the first quarter of 2023, with recent figures falling short of market expectations.
In the broader electric vehicle (EV) market, average prices also moved higher. March EV prices reached an estimated $59,205, up 7.0% from a year earlier. The price gap between EVs and traditional gasoline vehicles widened further, with EVs averaging nearly 25% more than the industry average of $47,462.
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While EVs remained more expensive, they continued to benefit from stronger incentives compared to gas-powered models. Incentives for EVs averaged 13.3% of the transaction price in March, slightly down from February but still significantly higher than incentives for internal combustion vehicles.
Analysts expect new vehicle prices, particularly for EVs, to climb further in the coming months as tariffs begin to impact inventory and pricing strategies across manufacturers.