The Polestar 4 SUV. Source: Polestar
New EVs still cost less than they did a year ago, but September brought buyers a double hit: higher prices and smaller discounts.
The average transaction price (ATP) paid for a new EV in the US rose to $55,879 in September, according to Kelley Blue Book, a Cox Automotive brand. That’s up about 2.4% from August’s downwardly revised average of $54,574.
Compared with September last year, though, EV prices were down 3%. Kelley Blue Book says a stronger mix of more affordable models helped lower the average.
So the longer-term picture is improving, even if September wasn’t a great month for bargain hunters.
The price premium for an EV over what Kelley Blue Book calls an “ICE+” model was 11% in September. That gap has stayed near 11% throughout 2026, down from an average of nearly 18% in 2025.
EV discounts are shrinking
Automakers also pulled back on EV incentives. Discounts averaged 11% of the ATP in September – their lowest level this year and down from 14.2% a year earlier. (September 2025 was the last month before the $7,500 federal tax credit expired, so there were some great incentives on the table.)
At September’s average EV price, that works out to roughly $6,147 in incentives. That’s an industry average, so the actual offer will depend on the vehicle you’re shopping for. (The Polestar 4, pictured above, has a rebate of up to $25,000 off its MSRP of $56,400 to $57,800, until November 2.)
Across the broader new-vehicle market, average transaction prices rose for the fourth consecutive month.
Tesla prices rose as well
Tesla’s ATP increased 3.3% month over month to $54,345 in September. Year over year, it barely changed, up 0.4%.
The Model 3 and Model Y accounted for nearly 97% of Tesla’s sales. Buyers paid an average of $53,804 for the Model 3 and $53,052 for the Model Y.
Nearly 1,500 Cybertrucks sold in September, with an average transaction price of $98,109.
For EV shoppers, the gap with ICE vehicles has narrowed considerably since 2025. But September’s higher prices and smaller incentives show that cheaper EV prices aren’t arriving in a straightforward way.
Read more: EV prices are falling while the average new car tops $50K
If you’ve ever considered going solar, make it easy by finding a trusted, reliable solar installer near you that offers competitive pricing by checking out EnergySage. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online, and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
