EV prices are falling while the average new car tops $50K

New electric vehicles got a bit cheaper last month, even as new car prices overall pushed past $50,000 for the first time this year. In August, the average price paid for a new EV was $54,813, down 1.2% from July and 2.7% from a year earlier, according to Kelley Blue Book. Meanwhile, the average price for any new vehicle rose to $50,089.

That narrows the gap between EVs and gas-powered cars. EVs now cost about 9.4% more than the average new vehicle, or roughly $4,700 more in dollar terms. A year ago that premium was over 16%. Tesla, which still makes up a large share of US EV sales, helped pull the average down: its own average transaction price fell to $52,616, down 2.4% from July and 3.4% year over year.

This happened even though automakers trimmed discounts slightly. Incentives averaged 12% of an EV's price in August, down from 12.2% in July and well below the 14.6% seen a year ago. Still, EV discounts remain nearly double the industry average of 6.5%.

For anyone weighing an EV purchase alongside a home charger or other electrical upgrades, the trend is worth noting: EVs still cost more than the average new car, but the price gap is shrinking while conventional car prices climb. Full price parity hasn't arrived yet, but the two are converging.