Electric vehicle transaction prices pulled back slightly in July, according to research from Kelley Blue Book, which was released earlier today. However, EV prices remain up nearly 19 percent over the past year, insinuating that electric powertrains and their price parity with other vehicles still remain out of reach.
The KBB study indicated the average cost of a transaction for any new electric vehicle in July was $66,645, down from $68,206 in June. This is a 2.3 percent reduction from June to July. However, July 2022, compared to the same month in 2021, is a completely different story.
Year-over-year, transaction prices have increased 18.8 percent, up from the average transaction price of $56,110 in July 2021.
“The average price for a new electric vehicle – over $66,000, according to Kelley Blue Book estimates – remains well above the industry average and more aligned with luxury prices versus mainstream prices,” the publication said regarding their market analysis.
“The new-vehicle market today is a seller’s market,” KBB Research Manager Rebecca Rydzewski told Teslarati. “Demand remains healthy, and inventories, particularly with fuel-efficient vehicles and EVs, are extremely tight. In these conditions, shoppers can’t expect much price relief.”
Electric Vehicle Price Parity
Since practically the beginning of the mass EV movement, automakers have been trying to figure out ways to make electric cars that are priced at levels comparable to gas vehicles.
Unfortunately, the EV supply chain is not yet mature enough to have affordable models across the board. Automakers rely on suppliers for some car parts, including batteries and battery packs, which make up the bulk of an EV’s cost.
EV prices soared in early 2022 as the metals used in battery cells increased substantially. This put significant pressure on automakers who were sourcing batteries from suppliers, whose profit margins decreased as material costs increased.
Tesla’s battery supply constraint is ending, price parity with gas cars is at hand
Carmakers have shifted their strategies to accommodate the increased prices. Tesla, Rivian, and other automakers shifted to different cell chemistries from vehicles with less range and performance. Meanwhile, car companies have worked to establish long-term mining deals to alleviate the uncertainty of material costs.
Tesla
Tesla’s average transaction cost dropped by 1.8 percent from June to July. However, its costs have increased by 20.5 percent compared to July 2021. This is higher than any other automaker KBB assessed. The next closest was Honda, which has seen an increase of 17 percent over the past year, with a 2.7 percent increase occurring from June to July 2022.
The industry average was 11.9 percent.
Rivian
Rivian did not have an active production model during this time last year. Its average transaction price did increase by 0.4 percent from June to July.
Polestar
Polestar’s prices have decreased from July 2021. The automaker has seen a 5.7 percent decrease in average transaction price since last year. Its change from June to July was only a few dollars.
“Long term, we do believe EV prices will moderate as supply chains improve and more lower-priced models are introduced, Rydzewski added. “Until then, though, we expect EV prices to stay more aligned with luxury-vehicle prices. Recent EV price hikes from Tesla, Ford, and others indicate the market direction. EVs, for the most part, are still costly to source and often feature the latest—expensive!—technology.”
I’d love to hear from you! If you have any comments, concerns, or questions, please email me at joey@teslarati.com. You can also reach me on Twitter @KlenderJoey, or if you have news tips, you can email us at tips@teslarati.com.
Elon Musk
Elon Musk is stepping up for Tesla Service in a big way
Elon Musk has stepped up to resolve a handful of customer issues regarding vehicle service.
Elon Musk is stepping up to help customers in a big way, especially when they are having issues with Tesla’s Service.
Perhaps one of the biggest advantages Tesla owners have is access to Musk through X, his social media platform. Over the years, we’ve seen Tesla add features, refine its cars’ performance, and more, all through asking Musk directly through a post.
Now, Musk is stepping up in another way by resolving a few Service complaints that customers had.
The first occurred last week when a recall on a Tesla battery was not honored by Service. The company sought $30,000 for a replacement and labor, which was not right. Musk responded that he would personally investigate the matter. The vehicle was fixed at no cost as it was a recall, and was ready for pickup the next day.
A Tesla story in four parts. 👏
Pretty nuts that the user in that second post is the CEO of a trillion-dollar company. pic.twitter.com/5VhXLka5s8
— TESLARATI (@Teslarati) August 8, 2025
It also revealed a new strategy Tesla is using to combat service communication issues:
Tesla creates clever solution to simplify and improve its Service
The next occurred with a Cybertruck owner who was in Japan. Their car was parked at an airport in the U.S. and had lost a vast majority of its state of charge, leaving them just fifty miles of range at the time.
Musk reached out to the owner and said Service will take care of the car and will investigate the cause of the battery drain:
This is strange. Tesla service will take care of your car and we will find out why this happened and fix it.
— Elon Musk (@elonmusk) August 8, 2025
There are not too many companies out there where the CEO will get involved with individual issues like these. It’s pretty exclusive to Tesla, as Musk has commonly stepped up to resolve complaints with vehicles or to confront features that some owners might find useful.
Service has been a weak point of the company for some time, but it has worked to refine and resolve customer complaints by building more Service Centers across the world that can handle these issues.
Elon Musk
Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when
Anyone will be able to request a Tesla Robotaxi in September, Elon Musk said this morning.
Tesla CEO Elon Musk has confirmed that the company’s Robotaxi platform is opening to the public, and he even gave a timeline for when anyone will be able to access one for a ride.
Tesla’s Robotaxi platform launched to a small group on June 22 in Austin, Texas. The company has continued to expand the number of riders and its geofence over the past month and a half.
Additionally, it launched rides in the Bay Area of California, but it differs slightly, as the Texas Robotaxi platform does not utilize a Safety Monitor in the driver’s seat. In California, the monitor sits in the driver’s seat.
As the geofence, service areas, and testing populations expand, Tesla fans are awaiting their elusive emails that enable their ability to use the Robotaxi platform. It now seems that the email will come soon, as Musk said Tesla will open up public access to Robotaxi next month:
It will be open access next month
— Elon Musk (@elonmusk) August 11, 2025
Tesla has been prioritizing safety over anything else with the launch of the Robotaxi platform, which is why it has been slow to push invitations to new riders. It is confident in the abilities of the platform and its Full Self-Driving suite, which has been proven with data.
However, even a single accident could set Tesla back years in terms of its development of self-driving cars. It is not a risk it is willing to take.
Musk said during the recent Q2 Earnings Call:
“We need to make sure it works when the vehicles are fully under our control. It’s kind of one step at a time here. We don’t want to jump the gun. As I said, we’re being paranoid about safety. But I guess next year is I’d say confidently next year. I’m not sure when next year, but confidently next year, people would be able to add or subtract their car to the Tesla, Inc. fleet.”
As the platform will expand in Austin and the Bay Area for anyone, Tesla still continues to reiterate that Robotaxi will be available for everyone sometime next year, as Musk said in the quote above.
Things will continue to improve over time, and Tesla will likely expand its geofence in both regions in the coming weeks. It has already done that in Austin twice, with about a doubling in size occurring both times.
Elon Musk
Tesla warns consumers of huge, time-sensitive change coming soon
Tesla is urging customers to take delivery of their new EV by September 30 in order to take advantage of the $7,500 tax credit.
Tesla is continuing to warn consumers of a huge, time-sensitive change that is coming soon, as the end of the EV tax credit is less than two months away.
The EV tax credit has offered $7,500 off new EVs and $4,000 off used EVs for certain individuals who qualify due to income. For years, it has been a great incentive for consumers, and it has improved further as car companies were able to apply the credit at the point of sale starting in 2023.
Tesla is ready with a perfect counter to the end of US EV tax credits
However, with the Trump Administration, it always seemed as if the EV tax credit was in jeopardy. Earlier this year, the White House officially announced that it would do away with it completely.
On September 30, the tax credit will be abolished. In order to utilize it, customers will have to take delivery of their vehicle by that date. Orders placed before September 30 without delivery by that day will not be able to utilize the credit.
Tesla is truly pushing this point incredibly hard: the sooner an order gets in, the more likely you are to take delivery of the car by September 30.
If there ever was a time to yolo your car purchase, it’s now
– $7,500 fed tax credit is ending
– To take advantage, eligible buyers must take delivery (not just order) by Sept 30The sooner you order, the sooner you can pick it up
— Tesla (@Tesla) August 9, 2025
The end of the EV tax credit is something that has been looming on the minds of electric carmakers, consumers, and investors.
The $7,500 discount for buying a clean energy vehicle truly puts many of the cars in a much more affordable price range. Without it, the least expensive Tesla model will be the Model 3 Rear-Wheel-Drive, which starts at $42,490.
That price comes down to $34,990 with the tax credit, and brings the monthly payment down about $130, depending on how much money is put down.
Despite the change, CEO Elon Musk does not believe it will impact Tesla negatively. In fact, he has been in favor of getting rid of the EV tax credit for several years, believing it will actually work to Tesla’s advantage.
Take away the subsidies. It will only help Tesla.
Also, remove subsidies from all industries!
— Elon Musk (@elonmusk) July 16, 2024
In my view, we should end all government subsidies, including those for EVs, oil and gas
— Elon Musk (@elonmusk) November 14, 2024
Perhaps the most interesting thing that will come of this is how all EV makers will be impacted by the loss of credit. Musk believes Tesla will come out as the big winner here, especially as it plans to roll out new affordable models sometime this year.
Elon Musk is stepping up for Tesla Service in a big way
Tesla CEO Elon Musk confirms Robotaxi is opening to the public: here’s when
Tesla warns consumers of huge, time-sensitive change coming soon
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