The Average Transaction Price (ATP) of new electric vehicles (EVs) reached a record high of $55,544 in December 2024, driven by the popularity of EV pickups and luxury models. The Tesla Cybertruck played a significant role in increasing Tesla’s ATP by approximately 10.5%.
According to a recent report from Kelly Blue Book, the ATP for EVs saw a year-over-year increase in December, rising by 0.8% from 2023 and 1.1% from November 2024. This surge in ATP can be attributed to the growing demand for luxury EVs and high-end electric pickups.
Full-size EV pickups, such as the Ford F-150 Lightning, experienced a substantial increase in sales volume, contributing to the overall rise in ATP for EVs. In fact, sales of vehicles priced over $80,000 saw a 37% year-over-year increase in December, with EVs accounting for a significant portion of this growth.
The Tesla Cybertruck, known for its futuristic design and impressive performance, played a key role in boosting Tesla’s ATP. Despite the discontinuation of the $99,990 Foundation Series All-Wheel Drive model, the Cybertruck continues to attract buyers with its high starting prices, pushing Tesla’s overall ATP up by 10.5%.
While EVs are driving industry-wide ATP levels to new heights, they still heavily rely on incentives and discounts to drive sales volume. In December 2024, incentives on EV sales exceeded 12% of the vehicle’s ATP for the sixth consecutive month, with an average incentive of $6,700 per vehicle—a 41% increase from the previous year.
Despite the record-breaking sales of EVs in 2024, questions remain about when EVs will achieve price parity with traditional combustion engine vehicles. With federal subsidies like the EV tax credit potentially facing cuts, automakers will need to find ways to make EVs more appealing to justify their higher price tags.
In conclusion, while EVs continue to set new sales records and drive industry-wide ATP levels up, they still face challenges in reaching price parity with traditional vehicles. The market trend towards luxury EVs and high-end electric pickups is likely to continue shaping the industry in the coming years.