EV prices fall in February and the gap with ICE shrinks to $6.5k

In February, electric vehicle prices retreated and the gap with gasoline cars shrank to about $6.5 thousand, according to Kelley Blue Book.

In February, the electric vehicle (EV) market showed different strength: prices retreated, while gasoline-powered cars registered a slight increase, narrowing the gap between the two sectors, according to Kelley Blue Book estimates.

Summary of the numbers

The average transaction price (ATP) for a new EV stood at $55,300, with drops of 1.4% compared to February of the previous year and 0.6% compared to January.

As a consequence, the gap between EVs and ICE (internal combustion engine) vehicles shrank to about $6,500, one of the smallest gaps ever recorded.

EV Incentives

Manufacturers intensified incentives to boost EV sales in February. The average incentive package rose from 12.4% of the ATP to 14.2%, more than double the average for the automotive market as a whole.

Tesla: price rises, sales fall

Tesla, the leader among EV manufacturers in the US, increased its ATP to $53,821 in February, a 3% rise compared to the same period last year. Still, sales fell, with estimates of about 38,500 vehicles sold in the month, -8.9% vs. the previous year. Even with the drop, Tesla performed above the average for the EV segment, which fell about 26% in the same comparison.

Overall Picture

The numbers show a market in adjustment: EV prices are falling, but they remain above those of ICEs, while incentives are gaining importance to sustain demand. The rest of the sector continues to monitor how this balance between price, incentives, and sales volume evolves in the coming months.

Call to action

Do you think the price gap between EVs and combustion cars will continue to narrow in the coming months? Share your opinion in the comments about what most influences this decision — price, incentives, or range — and how it affects your buying perspective.