Electric vehicles (EVs) are gaining traction, with enticing price drops month after month. However, the recent decline in upfront costs might be overshadowed by a potential hidden tax burden for some EV owners.
Good news for EV enthusiasts: According to Kelley Blue Book, the average transaction price for an EV in February 2024 was $52,314, a significant 12.8% decrease year-over-year. This decline is partly attributed to the falling prices of popular models like Tesla‘s Model 3 and Model Y.
The price drop breakdown:
Tesla Model Y: Prices reached a record low of $49,363 in February, reflecting a 16.2% decrease compared to the same month in 2023.
Tesla Model 3: Prices dropped to $43,614 last month, representing a 12% year-over-year decline and nearing its all-time low.
Market trend: High incentives and manufacturer discounts continue to play a significant role in lowering overall EV prices.
Stephanie Valdez Streaty, director of Industry Insights at Cox Automotive, said, “So while the higher inventory levels and increased competition continue to drive down the price premium of EVs, …