EV prices edged down in December just as incentives surged to record highs, a one-two punch that helped drive the strongest monthly EV sales since federal incentives were axed.
According to new estimates from Kelley Blue Book, the average transaction price (ATP) for a new EV in December came in at $58,034. That’s down modestly from November ($58,638), but still 2.4% higher than a year earlier, when the average EV sold for $56,691.
What really moved the needle last month was incentives. EV incentives jumped to 18% of ATPs in December, up both month-over-month and year-over-year, putting them in record territory. That extra discounting helped drive EV sales past 84,000 units for the month, the best showing since the Trump administration canceled the $7,500 federal tax credit on September 30.
Tesla, the biggest player in the EV market, leaned hard into incentives. The average price paid for a new Tesla in December was $53,680, down 2.9% year-over-year. Tesla prices also fell compared to November, while incentives surged. Sales incentives on new Tesla models averaged 19.5% in December, more than double the rate seen a year earlier.
Looking at the bigger picture, total US EV sales in 2025 reached about 1.28 million units, a roughly 2% decline compared to 2024. Cox Automotive expects sales in the year ahead to remain mostly flat, supported by new model launches and continued improvements to the US charging network.
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