If you’ve been waiting to buy an EV, the latest Kelley Blue Book June price data may give you another reason to wait a bit longer.
The average transaction price (ATP) for a new EV was $56,238 in June. That’s down 4.5% from a year ago, marking the sixth straight month that EV prices have declined year over year. Prices did tick up slightly from May, but they’re still trending in the right direction for buyers.
Early estimates suggest EV sales slowed in June compared with May, the strongest month for EV sales since Republicans scrapped federal tax credits at the end of Q3 2025. Even so, automakers continue to offer generous discounts to keep customers coming through the door.
For context, the ATP for a new vehicle overall in June – that’s EVs and ICE – was $49,758, an increase of 0.6% year over year and 0.4% higher than the upwardly revised May ATP.
EV incentives are still doing a lot of the heavy lifting
Incentives averaged 13% of the average EV transaction price in June. That’s down from 14% in May but still well above the industry average of 7%.
Manufacturers have leaned heavily on discounts, attractive financing, and lease deals since federal EV tax credits ended last year. Those incentives continue to help narrow the price gap between EVs and gas-powered vehicles.
For example, these three EVs have a 0% APR financing offer for 72 months*:
*trusted affiliate link
Tesla’s June prices were mixed
Tesla’s average transaction price edged up to $53,107 in June but remained 2.1% lower than a year earlier. That’s the automaker’s smallest year-over-year price decline so far in 2026.
The Model 3 saw a modest increase in its average selling price compared with a year ago. Meanwhile, the Model Y’s average transaction price fell 2.7% to $51,775. That’s significant, since the Model Y still accounts for more than 35% of all EV sales in the US.
EVs still cost more than the average new vehicle overall, but prices have been moving steadily lower for months. For shoppers, that’s welcome news, especially as automakers continue to use incentives to make electric models more affordable.
Read more: EV sales just hit their best month since federal tax credits ended
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