EV prices climb again in the US as automakers scale back discounts

Electric vehicle (EV) prices in the US rose for the first time in 2026. According to Kelley Blue Book, the average transaction price for a new all-electric vehicle hit $56,126 in July — up 1.6% from a year earlier and 1.2% from June.

The increase broke a downward trend in EV prices that had held since December. After the $7,500 federal tax credit for US-made clean vehicles expired at the end of 2025, automakers facing softer demand leaned more heavily on incentives to keep sales moving — and those discounts had been pushing EV prices lower ever since.

Sam Abuelsamid, vice president of market research at Telemetry, told Business Insider that July's price shift came down to two factors: tightening EV supply as automakers discontinue certain models, and renewed interest in EVs as gas prices remain elevated. "Automakers don't have a glut of EVs sitting around anymore," he said. "They don't need to spend as much on incentives or cut prices as aggressively. That gives automakers more room to set prices."

K.C. Boyce, vice president of automotive and energy research at Escalent, pointed to the effect of luxury buyers on the average price. Luxury-vehicle shoppers, he said, are far more likely to buy an EV than mainstream consumers, which can pull the average sale price higher. "Luxury buyers are the segment most inclined to buy an EV," he said. "That sets them apart from mass-market buyers."

EVs are now following the broader trend seen across the auto industry, where new-vehicle prices have been climbing steadily since March. According to KBB, the average transaction price for a new vehicle hit $49,855 in July — the highest reading of 2026 so far.

Abuelsamid predicts EV prices will keep inching up over the next several months until cheaper rival models hit the market. "There's clear interest in bringing more affordable models to market," he said. "Once they arrive, we can expect the average EV price to start heading back down." Several price-lowering models are already on the horizon: Slate's stripped-down pickup, starting at $24,950, is expected to begin deliveries later this year. Last week, Ford unveiled the Fathom pickup — the first model built on its new EV platform — with a starting price of $28,350. Toyota and Subaru have also rolled out new EV lineups starting in the low $30,000s.

Escalent's research found that consumers generally consider $32,000 to $48,000 a comfortable price range for a new vehicle. That, Boyce said, explains why many consumers feel that "new vehicles in general, and EVs in particular, are out of reach for me." Cutting the price isn't the only lever, he added: Escalent's research found that bundling a home charging station and installation with a new EV made consumers feel as if the vehicle's MSRP had been cut by $8,000. "That's a huge difference," Boyce said.