Average EV Price $14K Cheaper Than A Year Ago In US: Report

The average cost of an electric vehicle (EV) in the U.S. has dropped by $14,000 compared to last year, according to a recent report by Kelley Blue Book.

As reported by Electrek, the report reveals that the average transaction price for an EV in September was $50,683, a significant decrease from over $65,000 a year ago. The price also fell from $52,212 in August.

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Electrek‘s Jameson Dow highlighted last week that the price reduction aligns with ongoing price cuts by Tesla Inc. TSLA. Both the Tesla Model 3 and Model Y are now available at their lowest prices ever. This pricing strategy, in turn, has influenced the broader EV market due to Tesla’s dominant market position.

As the EV market continues to expand, 2023 saw the launch of approximately 15 new EV models, contributing to an increase in product availability. The availability of EVs, measured by days’ supply, was well above the industry average at the beginning of October. The supply of EVs was 97 days, down from a peak of around 111 days in early July.

According to Electrek, more affordable models and the $7,500 federal tax credit have led to more EV sales. This has resulted in a nearly 50% increase in EV sales in Q3 2023 compared to the same period the previous year.

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