US EV Prices Rise Again as Discounts Shrink
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- Kelley Blue Book reported the average US new-EV transaction price reached $56,126 in July — up 1.2% from June and 1.6% year-over-year, the first annual increase since December and ending six straight months of YoY declines.
- EV incentives averaged $6,626 in July, down 9.1% month-over-month and 24.3% year-over-year, shrinking to 11.8% of ATP compared with 15.8% in July 2025.
- Tesla's average new-vehicle transaction price rose to $53,891 in July, up 1.5% from June and 1.6% YoY, while Tesla incentives fell nearly 34% from a year earlier to $5,599 (10.4% of ATP vs. 16% in July 2025).
- Cox Automotive executive analyst Erin Keating noted that new 2027 model-year vehicles arriving on lots with fresh content and feature updates are adding upward pressure on both ATPs and MSRPs.
- EVs remain a premium segment: the overall new-car market ATP was $49,855 in July — $6,271 below the EV average — and industry-wide incentives averaged just 6.4% of ATP, meaning EVs still carry more discount support than the broader market.
Why it matters: Buyers face a double squeeze as EV incentives drop 24.3% YoY while transaction prices rise for the first time in seven months, narrowing one of EVs' main affordability levers. The $6,271 gap between the EV ATP and the $49,855 overall new-car average shows EVs still cost a meaningful premium, and the arrival of higher-priced 2027 models signals sticker prices will keep climbing.
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