EV incentives surged to 14.8% of ATP in Feb – highest in 5+ years

The average incentive package for a new EV was 14.8% of the average transaction price (ATP), or approximately $8,162, the highest level in more than five years, according to the latest monthly new-vehicle ATP report from Cox Automotive’s Kelley Blue Book. 

Incentives for EVs are more than twice the overall market. A year ago, EV incentives were 10.2%. EV incentives, as a percentage of ATP, have increased by 44% in the past year.

In February, at $55,273, new EV prices were lower by 1.2% from January – generally aligned with the industry – and higher by 3.7% year-over-year. The January EV ATP was revised higher by 0.06% to $55,929.

Compared to the overall industry ATP of $48,039, EV ATPs in February were higher by 15.1%, an increase from the 14.9% gap recorded in January.

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EV market leader Tesla increased ATPs by 1.8% year-over-year in February to $53,248 but decreased by 3.7% month-over-month from $55,315. Model 3, Model Y, and Cybertruck posted price declines in February compared to January; Model S and Model X saw month-over-month increases.

As sales cooled, the Cybertruck ATP in February dropped by more than 10% from January to an estimated $87,554.

Read more: You can lease a 2025 Polestar 3 for the same price as a Polestar 2 right now

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