EV prices are down 18% over the past year as drastic price cuts take effect

Electric vehicle prices are down 18% so far this month compared to April 2023. With most automakers launching aggressive discounts, many EVs are on fire sale right now. Some are even being offered for five-figure discounts.

Automakers are introducing aggressive EV price cuts

After slashing prices throughout last year, Tesla’s best-selling Model 3 and Model Y are still dragging down overall EV prices.

“Notably, lower EV prices have supported EV sales volumes in the US, particularly for key Tesla models,” Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, explained.

According to new data, EV prices are down 18.3% in April 2024, while non-EV prices are 13.1% lower than last year.

Seasonally adjusted prices are also down in all major market segments. Compact cars led the way (17.1%), followed by midsize (16%), pickups (15%), and SUVs (14%).

Electric vehicles led the way, with many automakers offering double-digit percentage discounts to clear inventory for new models. For example, Ford cut Mach-E prices by up to $8,100 in March.

Ford also opened orders for the 2024 F-150 Lightning this week while introducing new price cuts on the EV pickup of up to $5,500.

Volkswagen is offering $13,000 off the 2023 ID.4 AWD Pro S with a new lease deal to make room for the new 2024 model.

Hyundai slashed prices on the IONIQ 5 and IONIQ 6 earlier this year, undercutting much of the competition. Hyundai (including Kia) also has six of the top ten most fuel-efficient EVs in the US.

BMW recently introduced new rebates ranging from $5,000 to $7,500 this month on 2024 models. Nissan is offering nearly $16,000 off the Ariya electric SUV. The Mercedes EQS is $19,442 lower than its average price of $104,747.

On average, electric vehicle discounts reached nearly $6,000 in the first quarter. According to Cox Automotive data, average EV transaction prices slipped 9% compared to Q1 2023 and 3.8% from last quarter.

The data shows that the average price paid for an electric car in the US in March was $54,021, while the average transaction price for all vehicles was $47,735.

With Tesla increasing Model 3 prices, EV prices increased slightly this month. The average Model 3 price was $46,169, down 5.6% year over year but up 6.7% from last month. Overall incentives on the Model 3 were 8.2% of ATP, or $3,778.

Tesla was on the higher side, with overall incentives at 11.8% of ATP in March. However, it still trailed behind Polestar (14.4%) and Lucid (13.6%).