The cost of buying a new electric vehicle is ticking down as incentives increase and sales fall, particularly for U.S. EV market leader Tesla.
The average EV transaction price fell about 1% month-over-month in June, down 3% year-over-year to $56,910, Cox Automotive said.
The trend comes as automakers and dealers prepare for the end of federal EV transaction incentives in October pushed by the Trump administration and sealed by Congress with this month’s passage of the tax-and-spending “One Big Beautiful Bill,” as the White House dubbed it.
Incentives for EV sales rose for the second straight month to about 15% of the ATP, a historical high, Cox said.
Though first-quarter EV sales rose as many consumers rushed to showrooms to beat expected tariff-induced price increases, they were down 6% year-over-year, according to the data.
Tesla led the way in the decline, its deliveries down 10% year-over-year in the first six months of 2025, and was joined by Ford and Kia in falling EV sales, said Cox, which noted that General Motors made 13% of U.S. EV sales, making it the No. 2 U.S. EV seller behind Tesla.
Tesla’s ATP was down 6% year-over-year in June despite making the best-selling U.S. EV in the Model Y, Cox said.
