- In December 2024, the ATP for a new electric vehicle was a hefty $55,544.
- By comparison, the ATP for a new gas-powered car that month was $49,270.
- The used market showed a similar gap between EV and ICE transaction prices.
As the auto industry moves toward an electric future, one major obstacle remains: cost. Automakers and analysts insist that electric vehicles will eventually dominate the market, even if the timeline shifts, but for most buyers, affordability is still a major hurdle.
People aren’t going to make the switch if electric cars remain significantly more expensive than their gas-powered counterparts. And while a new analysis confirms that EV prices are dropping, new models are still selling for more than comparable ICE alternatives.
Read: EV And PHEV Sales Surged 26% Globally In 2024, But The Party’s Over In Europe
After analyzing sales of new and used EV sales in December 2024, Cox Automotive found that the average transaction price (ATP) for new EVs was $55,544. That’s a 1.1% increase from the previous month and up 0.8% from the year before. More importantly, new EVs are still selling at a premium compared to ICE vehicles, as the ATP for gas-powered cars last month was $49,270, meaning new EVs, on average, $6,274 more expensive.
It’s not just new EVs that are selling for more than the average ICE vehicle, as the same trend holds in the used market. In December, the ATP for all used vehicles, including both ICE and EVs, was $32,712, while used EVs alone averaged $36,976. These figures only account for vehicles five years old or newer. On the bright side, the ATP for used EVs was 8.9% lower than the previous year.
The Price Gap Isn’t the Whole Story
One important caveat in Cox Automotive’s findings is that their comparison between EVs and gas-powered cars isn’t entirely apples-to-apples since the sheer number of budget-friendly ICE options naturally pulls the average price down. Comparing the ATP of all EVs to all ICE vehicles is a bit like pointing out that Toyota Corolla is cheaper than the average gas-powered car—technically true, but only because the ICE segment includes everything from economy hatchbacks to super luxury sedans.
This uneven playing field makes it difficult to determine whether EVs are truly priced higher or if the market just lacks enough affordable options.
EV Sales Are Growing
December was a strong month for both new and used EV sales across the United States, though some of that momentum may have been driven by concerns that the $7,500 federal tax credit could disappear. A total of 132,392 new EVs were sold during the month, marking a 14% increase from the previous month and a 12.6% jump year-over-year. This pushed EVs to 8.8% of all new vehicle sales nationwide.
According to Cox Auto, the five best-selling new EVs were the Tesla Model Y, Tesla Model 3, Honda Prologue, Ford Mustang Mach-E, and Chevrolet Equinox.
Used EV sales also saw a surge, with 28,483 units sold in December, an impressive 62.6% jump compared to the same time last year. Once again, Tesla dominated the charts, with the Model 3 and Model Y as the most frequently sold used EVs, followed by the Chevrolet Bolt, Tesla Model S, and Ford Mustang Mach-E.
The Bottom Line
While EVs continue to gain ground, pricing remains a sticking point. The good news? Used EV prices are dropping, and sales are climbing despite the cost gap. But for electric adoption to truly take off, automakers will need to figure out how to bring prices closer in line with their gas-powered competition.
