Cox Automotive and Kelley Blue Book revised the electric vehicle (EV) transaction price data in January to more accurately capture the expanding EV market.

According to the revised analysis, the average price paid for a new electric vehicle in January 2024 was $55,353. Year over year, EV prices have tumbled 10.8%, according to the most recent analysis.

January 2024 EV prices were higher month over month by 3.2%, as EV ATPs in December 2023 averaged $53,611, the lowest point in the past 12 months.

EV Prices Down

Mark Strand, senior director of Business Intelligence at Cox Automotive, said the overall narrative is unchanged – EV prices have come down significantly in the U.S. in the past year, led by price cuts at Tesla.

“Our newly revised EV pricing data more accurately reflects the real-world pricing of electric vehicles in the U.S,” said Strand.

“With new EVs launching into the market seemingly every month, our pricing models have to be continually updated and revised to capture a clear picture of the market.”

Incentive Packages Rising

On many models, EV incentives have jumped more than three-fold in the past year. For example, in January 2023, the VW ID.4 carried an average incentive package equal to approximately 6% of ATP; last month incentives jumped to nearly 17% of ATP.

Nissan Leaf saw incentives jumped 10 percentage points to nearly 18. Hyundai Ioniq5 incentives climbed from less than 3% in January 2023 to more than 18% last month, as higher inventory and slowing sales have pushed automakers and dealers to layer on the discounts in an effort to spur sales.

Prices for the Tesla Model Y, the industry’s EV volume leader, have fallen more than 21% in the past year, dropping from nearly $63,000 in January 2023 to less than $50,000 last month.