Higher Tesla Model 3 prices bumped up EV prices overall in March

After Tesla’s price cuts pulled a quarter of overall EV prices down in February, higher Model 3 prices increased EV prices in March.

According to EV transaction price data from Kelley Blue Book’s March Average Transaction Price report released today, the average price Americans paid for an EV in March was $54,021, up from a revised $53,707 in February.

EV prices in March were lower year-over-year by 9.7%, but not as low as February, which saw a 10.5% year-over-year price drop.

Tesla Model 3 transaction prices last month, at $46,169, were lower year-over-year by 5.6% but up 6.7% month-over-month.

Incentives on the Model 3 were 8.2% of average transaction prices (ATP), or $3,778. Tesla’s overall incentives were 11.8% of ATP in March but were not the highest among EV manufacturers.

In March, incentives at Polestar were 14.4% of ATP, and Lucid was 13.6%. High incentives and discounts on most EV models continue to play a role in lower EV prices.

Stephanie Valdez Streaty, director of Industry Insights at Kelley Blue Book’s parent company Cox Automotive, said:

Notably, lower EV prices have supported EV sales volume in the US, particularly for key Tesla models.

The average transaction price for a new EV decreased by 9.0% in Q1 [2024] compared to Q1 2023 and dropped 3.8% quarter-over-quarter.

However, as noted in our Q1 EV sales report, lower EV prices have not generated appreciably higher sales volume so far.

Read more: Tesla increases Model 3 price, now costs as much as Model Y

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