EV prices are falling while the average new car tops $50K

The average new EV got cheaper in August, even as the average transaction price (ATP) paid for a new vehicle in the US climbed back above $50,000.

New EV buyers paid an average of $54,813 in August, according to Kelley Blue Book. That was down 1.2% from July and 2.7% year over year.

Meanwhile, the industry-wide ATP rose to $50,089 – up 0.5% month over month and 1.9% year over year. August was the first month in 2026 that the average new-vehicle price topped $50,000.

That left EVs with a 9.4% price premium in August, down sharply from more than 16% a year earlier. In dollar terms, the average EV costs around $4,700 more than the average new vehicle – the smallest gap yet.

EV prices also fell despite automakers pulling back slightly on discounts. Incentive spending averaged 12% of an EV’s transaction price in August, compared with 12.2% in July and 14.6% year over year. EV incentives were still nearly twice the industry-wide average of 6.5%.

Tesla continued to pull down the overall EV average. Its average transaction price fell to $52,616 in August, down 2.4% from July and 3.4% year over year. Because Tesla still accounts for such a large share of US EV sales, its pricing has an outsized effect on the market as a whole.

So, EVs haven’t reached price parity yet, but they’re moving closer while the average new car price rises.