Purchase cost of US EVs falls in February

The average price paid for an EV in February was $52,314, down by 4.6pc from $54,863 in January, according to estimates from consultancy Cox Automotive's Kelley Blue Book.

Prices were also down by 12.8pc from $60,000 in the same month of 2023, an accelerating decline compared to January when prices were lower year-on-year by 11.6pc.

The market’s general EV price decline has been led in part by the two most popular EVs in the US – the Tesla Model 3 and Model Y.

Average prices for the Model Y last month, estimated at $49,363, were 16.2pc lower than February 2023 and the lowest on record.

And transaction prices for the Model 3, estimated at $43,614, were 12pc lower than February 2023 and near the lowest level on record.

Substantial incentives and discounts on EVs have played a major role in lowering prices, according to Cox Automotive. The analyst's published price estimates do not include consumer incentives such as the $7,500 tax credit for new EVs and $4,000 tax credit for used EVs enacted by the Inflation Reduction Act.

Average transaction price for Tesla vehicles overall was at $50,307 in February, 16.1pc lower than February 2023.

Average transaction prices for cars made by Sino-Swedish EV pure play Polestar also saw a decrease of 11.3pc to $56,180 in February.

“While the higher inventory levels and increased competition continue to drive down the price premium of EVs, it is important to acknowledge that EVs remain priced above mainstream non-luxury vehicles by nearly 19pc,” says Stephanie Valdez Streaty, director of industry insights at Cox Automotive.