Photo: Honda
After six straight months of year-over-year declines, the average transaction price (ATP) paid for a new EV in the US is rising again.
New EVs sold for an average of $56,126 in July, according to the latest pricing report from Kelley Blue Book, a Cox Automotive brand. That’s up 1.2% from June and 1.6% from July 2025 – the first annual increase since December.
Shrinking discounts are part of the reason. EV incentives averaged $6,626 in July, down 9.1% in a month and 24.3% from a year earlier.
Incentives were equal to 11.8% of the average EV transaction price, compared with 15.8% in July 2025. Automakers are still offering more help on EVs than on new vehicles overall; industrywide incentives averaged just 6.4% of the transaction price.
Tesla’s prices followed the same pattern. The average price paid for a new Tesla rose to $53,891, up 1.5% from June and 1.6% year over year.
Meanwhile, Tesla incentives dropped nearly 34% from a year ago to $5,599. Discounts represented 10.4% of Tesla’s average transaction price, down from 16% in July 2025.
EVs are also still more expensive than the wider new-car market. The ATP for all new vehicles was $49,855 in July, $6,271 below the EV average.
Cox Automotive executive analyst Erin Keating had this to say about new-vehicle sales in July:
While incentive spending eased in July, that’s only part of the pricing story. We’re also seeing more 2027 model-year vehicles arrive on dealer lots, bringing fresh content, feature updates, and higher sticker prices to market. Consumers continue to gravitate toward more affordable segments, which is helping keep overall transaction price growth in check, but the steady flow of newer vehicles is providing some upward pressure on both ATPs and MSRPs.
For EV buyers, the takeaway is straightforward: EV incentives are still generous compared with the rest of the auto market, but shoppers are now paying more as automakers pull back on them.
Read more: EV prices just fell again – here’s what US buyers paid in June
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