But those big drops represent a return to normal. A year ago, demand for electric vehicles due to high gas prices from the war in Ukraine sent prices on an upward swing. Now, more sector competition, higher inventory and incentives are pushing prices back down.
Tesla has been cutting its prices to stay competitive, especially with its high inventory of unsold vehicles, she said. Its price cuts helped lower the average cost to $53,438 in June, she added.
However, other manufacturers’ models, such as General Motors’ Chevrolet Bolt EV — which sells for about $30,000 — also factored into the decline of the average price, given the sticker price is unusually cheap for the sector.