US EV Prices Rise 1.6% as Automakers Cut Discounts
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- Average EV transaction prices climbed to $56,126 in July, up 1.2% from June and 1.6% year-over-year, marking the first annual increase since December after six straight months of declines, per Kelley Blue Book.
- EV incentives averaged $6,626 in July, down 9.1% in a month and 24.3% year-over-year, with incentives representing 11.8% of the average transaction price versus 15.8% in July 2025.
- Tesla's average new-vehicle price rose to $53,891, up 1.5% from June and 1.6% YoY, while Tesla-specific incentives dropped nearly 34% year-over-year to $5,599 (10.4% of ATP vs. 16% in July 2025).
- EVs remain more expensive than the broader market — the $56,126 EV ATP sits $6,271 above the $49,855 average for all new vehicles, though EV incentives still nearly double the 6.4% industrywide incentive share.
- Cox Automotive analyst Erin Keating attributed upward price pressure partly to a steady flow of 2027 model-year vehicles arriving on dealer lots with new content and higher sticker prices, even as consumers continued gravitating toward affordable segments.
Why it matters: EV buyers are losing the discount cushion that helped make new EVs more affordable through the first half of 2025 — a 24.3% drop in average incentives means shoppers now pay $56,126 on average versus $6,626 less than a year ago in incentive value, narrowing the effective price gap with gas vehicles.
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