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New EV Prices Went Down Over $2,000 On Average In February

Electric vehicles were still generally $5,000 more than the industry average, though. But things are getting better.

The Tesla Model 3 and Model Y were the biggest drivers for the price decrease in February

Iulian Dnistran Iulian Dnistran

By: Iulian Dnistran

Mar 12, 2024 at 8:30am ET

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The average price of new electric cars continued to decrease in February, thanks in no small part to Tesla, according to data from Cox Automotive.

Last month, the average transaction price (ATP) for a new EV in the United States was $52,314, a decrease of 4.6% from January’s $54,863 ATP. Compared to February of last year, the average price of new EVs went down by 12.8%, accelerating the decline seen in January, when prices were lower year over year by 11.6%, Cox Automotive shows.

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EVs are getting cheaper, but the numbers need to go down further

The average price of a new EV in the United States in February was $52,314, a decrease of over $2,000 compared to January. Year over year, the average price of new EVs in the U.S. has gone down by 12.8%, but it's still roughly $5,000 higher than the industry average.

The main drivers for the decline in the average price were Tesla’s Model 3 and Model Y. For the Model Y, last month’s average transaction price of $49,363 was the lowest on record, down by 16.2% compared to the same month last year. The ATP for the Model 3 was $43,614 in February, 12% lower year over year and almost the lowest recorded.

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Polestar, another EV-only automaker, also saw the average transaction price of its models go down to $56,180 last month, a decrease of 3.7% compared to January and 11.3% year over year.

With all this being said, however, EV prices still have some catching up to do when compared to the industry average. Overall, the new car average transaction price—which includes electric, hybrid, plug-in hybrid, and combustion models—went down by just 0.1% last month and reached $47,244. That’s $5,070 less than the average transaction price of EVs in the U.S., meaning that widespread adoption is still rocky due to the high entry price.

The cheapest EV on the market remains the Nissan Leaf, which retails for $28,140 before taxes and fees (or up to $3,750 in tax credits), while the cheapest combustion car is the $16,695 Mitsubishi Mirage. Granted, the Mirage is smaller than the Leaf, but some people just need a simple form of transportation to get them to work every day.

2024 Nissan Leaf

The Nissan Leaf is the cheapest new EV on sale in the United States

from left: 2024 Tesla Model 3 (aka Highland) and Tesla Model Y

The Tesla Model 3 (left) and Model Y (right) had the biggest price cuts in February, according to Cox Automotive.

“Our research continues to show that price remains a significant barrier for consumer adoption,” said Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive. “While the higher inventory levels and increased competition continue to drive down the price premium of EVs, it’s important to acknowledge that EVs remain priced above mainstream non-luxury vehicles by nearly 19%.”

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Furthermore, even though the Tesla Model Y and Model 3 were the main EVs that prompted the ATP to go down in February, Tesla’s ATP actually went up by more than $2,000 last month.

What's the next great frontier for affordable EVs? Let us know in the comments below.

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