EV Prices Dipped Year-Over-Year, But September Stung Buyers
September delivered a split verdict for US EV shoppers. Compared with a year ago, new electric vehicles still cost less, but the month-to-month trend moved the wrong way. According to Kelley Blue Book, the average transaction price paid for a new EV climbed to $55,879, up about 2.4% from August. At the same time, automakers pulled back on discounts, leaving buyers with fewer deals just as prices ticked higher. Here's what the numbers reveal, why the pullback happened, and what it means if you're shopping for an EV.
The Double Hit: Higher Prices, Smaller Discounts
September wasn't kind to bargain hunters. The average transaction price for a new EV rose 2.4% month-over-month to $55,879, according to Kelley Blue Book. Meanwhile, incentives fell to 11% of the average transaction price, their lowest level this year and down from 14.2% a year earlier. That works out to roughly $6,147 in average discounts. The timing matters: September 2025 was the last month before the $7,500 federal tax credit expired, so last year's incentives were unusually generous. This year, buyers face higher sticker prices and thinner discounts at the same time.
The Long View Is Still Improving
Zoom out, and the picture looks better. EV prices were down 3% compared with September last year, and Kelley Blue Book credits a stronger mix of more affordable models for helping lower the average. The price premium for an EV over what Kelley Blue Book calls an "ICE+" model was 11% in September, holding near that level throughout 2026. That's a meaningful drop from an average of nearly 18% in 2025. So while September felt like a setback, the broader trend shows EVs closing the gap with conventional vehicles.
Tesla's Numbers and What They Signal
Tesla's average transaction price increased 3.3% month-over-month to $54,345 in September, but barely moved year-over-year, up just 0.4%. The Model 3 and Model Y 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. Nearly 1,500 Cybertrucks sold in September at an average transaction price of $98,109. Across the broader new-vehicle market, average transaction prices rose for the fourth consecutive month, suggesting the pressure isn't unique to EVs.
Key Takeaways
- New EV prices rose 2.4% month-over-month to $55,879 in September, but remain 3% lower than a year ago.
- EV incentives fell to 11% of average transaction price, their lowest level this year, down from 14.2% a year earlier.
- The EV price premium over ICE+ models held near 11% in September, down from nearly 18% in 2025.
- Tesla's average transaction price rose 3.3% month-over-month to $54,345, with the Model 3 and Model Y driving nearly 97% of sales.
- Broader new-vehicle prices rose for the fourth straight month, signaling market-wide upward pressure.
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