In February, electric vehicle (EV) prices experienced a notable decline of nearly 13% year-over-year, driven in part by reductions in prices for Tesla’s Model 3 and Model Y, as reported by Kelley Blue Book.
According to recently revised EV transaction price data, the average price paid for an EV in February stood at $52,314, marking a decrease from a revised figure of $54,863 in January, as per estimates from Cox Automotive and Kelley Blue Book.
Comparing year-over-year figures, EV transaction prices in February witnessed a decline of 12.8%, showcasing an accelerated decrease compared to January, when prices were down by 11.6%.
The overarching decline in EV prices has been partly spearheaded by the Tesla Model 3 and Model Y, recognized as the two most sought-after EVs in the United States.
Last month, transaction prices for the Model Y were estimated at $49,363, marking the lowest recorded figures and showcasing a 16.2% decrease compared to February 2023.
Similarly, transaction prices for the Model 3 in February, at $43,614, represented a year-over-year decline of 12% and hovered near record-low levels.
Considerable incentives and discounts offered on most EV models have also contributed significantly to the downward trend in EV prices. For instance, Kelley Blue Book estimates indicate that Polestar’s incentive package amounted to over 10% of the average transaction price.
Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, emphasized that despite the increased competition and higher inventory levels driving down the price premium of EVs, it’s important to recognize that EVs still maintain a pricing advantage of nearly 19% over mainstream non-luxury vehicles.
