Key facts
- The average transaction price for a new electric vehicle increased to $56,126 in July.
- This represents a 1.6% rise year-over-year and a 1.2% increase from June.
- EV prices had been declining since December.
- Automakers are reducing incentives due to tighter EV supply and sustained demand.
- New vehicle prices overall have been increasing since March.
The average transaction price for new electric vehicles (EVs) has risen for the first time in six months, reaching $56,126 in July, according to Kelley Blue Book (KBB). This marks a 1.6% increase compared to July of the previous year and a 1.2% rise from June, breaking a trend of declining prices that began in December.
Following the expiration of the $7,500 federal tax credit for US-made clean vehicles in late 2025, automakers increased their own incentives to boost EV sales amidst softening demand. These manufacturer discounts contributed to the downward pressure on EV transaction prices throughout the first half of the year.
Experts attribute the recent price increase to two primary factors: a tightening of EV supply as some models are discontinued, and a renewed consumer interest in electric cars driven by persistently high gasoline prices. "Automakers have less excess inventory of EVs," stated Sam Abuelsamid, vice president of market research at Telemetry. "They don't have to spend as much on incentives, and they don't have to negotiate on price as much. It gives car companies more pricing power."
K.C. Boyce, vice president of automotive and energy research at Escalent, noted that luxury buyers are more inclined to purchase EVs, which can influence the average transaction price. "Buyers in the luxury segment are most likely to purchase an EV versus those on the mainstream side," he said.
EVs are now aligning with a broader industry trend, as new-car prices have been on the rise since March. The average transaction price for any new vehicle hit $49,855 in July, the highest figure for 2026 so far, according to KBB.
Looking ahead, Abuelsamid anticipates that EV prices may continue to increase gradually until more affordable competitors enter the market. Several lower-cost models are expected to launch soon, including Slate's pickup truck starting at $24,950, Ford's Fathom pickup at $28,350, and new EVs from Toyota and Subaru in the high $30,000s. Escalent's research indicates that consumers generally consider vehicles priced between $32,000 and $48,000 to be affordable. Boyce also highlighted that including a home charger and installation with a new EV can make it feel as affordable as an $8,000 MSRP cut to consumers.