The EV segment continues to shift, with vehicle pricing showing a steady decline. Interestingly, a new study indicates that the average price of a new all-electric vehicle is now lower than the average price for a new Tesla. For more than a year, the average transaction price (ATP) for a new Tesla was lower than the industry-wide ATP for a new all-electric vehicle. Previously, the lower ATP for a new Tesla was the result of aggressive price cutting from the automaker, as well as the increasing prevalence of high-dollar models from legacy luxury brands.
According to data from Cox Automotive, as reported by Automotive News, the industry-wide average all-electric vehicle transaction price has fallen below the average transaction price for a new Tesla for the first time since February of the 2023 calendar year. The ATP for an all-electric in April was $55,235, or $433 under the ATP for a new Tesla during the same time period. In May, data indicates that the industry-wide ATP for a new EV was $56,235, or $721 under the average price for a new Tesla during the same time period.
Notably, these figures slot in just below the starting MSRP for the Cadillac Lyriq, which is set at $58,590 for the Tech RWD model.
Tesla has had a particularly impactful effect on the all-electric segment, with recent price cuts shaking up the market. Prices have also fallen as consumers are given greater choice in all-electric models. The data shows that the average discount for a new all-electric vehicle was 12.4 percent of ATP in May, or six points higher than the industry average (including ICE vehicles). Meanwhile, used all-electric sales have grown in conjunction with the fall in prices, indicating that the segment is starting to open up to new buyers.
With the affordable Chevy Equinox EV now hitting the market, the ATP for a new all-electric vehicle could decline even further. Additionally, there is a growing trend among automakers, such as Kia, VW, and Jeep, in promising more affordable, entry-level all-electrics to compete with future models like the Chevy Bolt EV, all of which points to yet further ATP reductions.
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Comments
I’m sorry but in which fantasy world is this happening? The one with the unicorns or the one with the fairies? Because here in the United Reality States of America I just read an article that GM is canceling the 1LT Equinox. So I am still failing to see this price paritiy I keep getting promised.
Canceling? NO. Not producing as a 2024! You must of heard that on News Max!
Evrery new technology cost more when introduced. Remember the IBM Personal Computer in 1981? It cost over $3,000 for a monochrome CRT 12-inch screen, 64
MB of memory, and two 1.44 MB floppy drives. In 1981, that computer cost more than two months of salary.
Same for large screen TV sets. By 2000, the first 32-inch flat sceen cost $2 000 or more.
So EV prices will drop in less than six years.
Dont forget the DVD player. Yep how easily we forget! LOL. We seem to just have a bunch of whiny americans that want and want it now and at dirt cheap prices!
So what you are saying is that EV prices are indeed coming down? That’s great news. Both of my Teslas are less than 50k before tax breaks so not sure about the data but ok. Either way EVs WILL be less than every ICE car soon and by 2030 it’s over. It will be superior in every metric. The only market that will take awhile is heavy duty vehicles . Semi just need the 1MW chargers along the highways and they will be cheaper to purchase and run too. Infrastructure just takes a while to deploy. The end of the ICE age is near.