The U.S. new vehicle market experienced a slowdown in sales in January, 2024. However, lower prices and increased incentives are expected to boost sales as the year progresses. In the case of electric vehicles (EVs), the average transaction price decreased by 10.8 percent in January 2024 compared to the same month in the previous year, amounting to $55,353. This represented a slight increase from the lowest point of $53,611 in December 2023.
The EV pricing data has been revised to more accurately reflect the real-world pricing of electric vehicles in the U.S. With new EV models entering the market frequently, pricing models are continuously updated to capture an up-to-date picture of the market. The average price of the Model Y has dropped by more than 21 percent over the past year, falling from an average of $63,000 to $50,000. This decrease has been influenced by a significant increase in incentives, which have more than tripled in the past year, with a nearly 17 percent increase in the previous month. Data from Kelley Blue Book revealed that Tesla’s average transaction price decreased from $62,350 in January 2023 to $49,518 in January 2024.
Across the entire automotive industry, prices have dropped by approximately 3.5 percent, amounting to around $1,600 on average.