The average price paid for a new EV decreased in December by $3,594 (down 5.5%) compared to November and ended the year lower by 0.6%. The average new EV sold for $61,448, according to Kelley Blue Book estimates, still well above the industry average.
The drop in pricing was driven by significant price cuts at Tesla, which commands more than 65% of the electric vehicle segment. Earlier in the year, Tesla was increasing prices, citing supply issues. In December, the company reversed course.
Electric vehicles had the highest incentives in December, again influenced by changes at Tesla, at 6.2% of ATP, followed closely by luxury cars at 5.8% of ATP, according to Kelley Blue Book estimates. Meanwhile, vans, minivans and full-size SUVs had the lowest incentives, all less than 1% of ATP.