EV Prices Dip Year-over-Year, but September Reverses the Trend

September delivered a mixed bag for electric vehicle shoppers in the United States. According to Kelley Blue Book, the average transaction price for a new EV climbed to $55,879, marking a 2.4% increase from August's revised figure of $54,574. However, compared to September of last year, prices have actually fallen by 3%, thanks to a growing selection of more budget-friendly models entering the market.

The broader narrative shows a narrowing gap between EVs and internal combustion vehicles. The price premium for an EV over an “ICE+” model settled at 11% in September, a significant drop from the nearly 18% average seen throughout 2025. This suggests that while month-to-month fluctuations occur, the long-term trend is toward more affordable electric options.

Automakers also scaled back incentives in September, with discounts averaging just 11% of the average transaction price—the lowest level this year. A year ago, that figure stood at 14.2%, largely because September 2025 was the final month before the $7,500 federal tax credit expired, prompting aggressive promotional offers. At September's average price, the current incentives translate to roughly $6,147 per vehicle, though actual offers vary by model.

Tesla, a key player in the EV market, saw its average transaction price rise 3.3% month-over-month to $54,345, a mere 0.4% increase year-over-year. The Model 3 and Model Y together accounted for nearly 97% of Tesla's sales, with buyers paying an average of $53,804 for the Model 3 and $53,052 for the Model Y. Meanwhile, the Cybertruck sold nearly 1,500 units at an average price of $98,109.

Despite September’s uptick in prices and reduced discounts, the overall trajectory since 2025 points to a gradual closing of the cost gap between EVs and traditional vehicles. For consumers, the path to cheaper EVs may not be linear, but the direction remains promising.