In July, Tesla Model 3’s price was 30% higher than January (but EV prices are still dropping)

EV prices in July were higher month-over-month but lower year-over-year – and the Tesla Model 3 price was up an eyebrow-raising 30% from January, reports Kelley Blue Book.

The average transaction price (ATP) for an EV in July was $56,520 (and remember, folks – the $7,500 tax credit isn’t reflected in the ATPs). That’s higher than June but lower year-over-year by 1.5%.

The average incentive package offered with a new EV in July was over 12% of the transaction price, the highest level in more than three years. That’s also around twice the level seen in July 2023, when typical incentive packages were equal to 6.0% of the ATP.

EV incentives in July were 73% higher than the industry average, and there are also higher inventory levels, both of which tip the scales in favor of buyers. However, high loan rates and strict credit conditions are restraining potentially robust industry sales.

Average transaction prices at Tesla continue to rise after dropping to near the industry average in December 2023. In July, Tesla ATPs were $59,593, up 11% from a year ago and at the highest point since February 2023. The success of the Cybertruck is pulling Tesla prices higher, although Model 3 and Model Y prices have risen steadily through the year.

In July, the ATP for Model Y was $52,055, up 5% from January, while Model 3 was $53,878, up 30% from January, when Model 3 ATPs were $41,531. The Model Y and Model 3 are the top-selling EVs in the US market.

But keep in mind that there are plenty of great EV deals still to be had right now:

If you live in an area that has frequent natural disaster events, and are interested in making your home more resilient to power outages, consider going solar and adding a battery storage system. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. –trusted affiliate link*