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.
News
Tesla Model 3 and Model Y named top car buys in Norway
Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability.
Norway’s annual roundup of the best car purchases featured Tesla’s two main sellers this year, with the Model 3 and Model Y securing top positions in their respective segments.
Despite growing competition from European and Korean brands, both models stood out for their balance of price, performance, and everyday usability. The verdict comes as electric vehicle adoption remained above 95% of new vehicle sales in the country.
Tesla Model 3 strengthens its value position
Among compact EVs, the Tesla Model 3 maintained its position as the best overall buy thanks to its strong blend of performance, efficiency, and updated features. Reviewers noted that every trim offered compelling value, especially with the all-electric sedan’s improved cabin ergonomics and the return of the turn-signal stalk, which was one of the few previous complaints among drivers.
The Model 3’s mix of long-range capability, low operating costs, and responsive handling has continued to set the benchmark for compact EVs in Norway. While competitors from Hyundai, Volkswagen, and Peugeot have narrowed the gap, Tesla’s price-to-capability ratio has remained difficult to beat in this segment, Motor.no reported.
“The Model 3 clearly offers the best value for money in the compact class, no matter which version you choose. Now it also gets the turn signal lever back. This eliminates one of the few flaws in a driving environment that many believe is the best on the market,” the publication wrote.
-->Tesla Model Y claims its crown
The Tesla Model Y emerged as Norway’s top family-car purchase this year. The latest refresh introduced improvements in ride quality, styling, and interior materials, allowing the Model Y to deliver a more premium driving experience without a substantial price increase.
Reviewers praised its spacious cabin, strong safety profile, and practical range, all of which reinforced its appeal for families needing an all-purpose electric crossover. The Model Y remains especially notable given its continued popularity in Norway even as Tesla faces declining sales in other global markets.
“The Model Y is back as the winner in the family class. The upgrade in the new year was even more extensive than expected. It is a slightly more elegant and significantly more comfortable Model Y that solidifies its position as Norway’s best car purchase in the most important class,” the Norwegian motoring publication noted.
News
Tesla Giga Berlin is still ramping production to meet Model Y demand: plant manager
Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand.
Tesla Gigafactory Berlin has expanded to two full shifts, as per the facility’s plant manager, and a lot of it is due to Model Y demand. While registrations in some countries such as Sweden have fallen sharply this year, the company’s sales in other key territories have been rising.
Giga Berlin shifts to two shifts
Giga Berlin factory manager André Thierig told the DPA that the facility has been running two shifts since September to manage a surge in global orders. And due to the tariff dispute with the United States, vehicles that are produced at Giga Berlin are now being exported to Canada.
“We deliver to well over 30 markets and definitely see a positive trend there,” Thierig said.
Despite Giga Berlin now having two shifts, the facility’s production still needs to ramp up more. This is partly due to the addition of the Tesla Model Y Performance and Standard, which are also being produced in the Grunheide-based factory. Interestingly enough, Giga Berlin still only produces the Model Y, unlike other factories like Gigafactory Texas, the Fremont Factory, and Gigafactory Shanghai, which produce more than one type of vehicle.
Norway’s momentum
Norway, facing an imminent tax increase on cars, has seen a historic spike in Tesla purchases as buyers rush to secure deliveries before the change takes effect, as noted in a CarUp report. As per recent reports, Tesla has broken Norway’s all-time annual sales record this month, beating Volkswagen’s record that has stood since 2016.
-->What is rather remarkable is the fact that Tesla was able to achieve so much in Norway with one hand practically tied behind its back. This is because the company’s biggest sales draw, FSD, remains unavailable in the country. Fortunately, Tesla is currently hard at work attempting to get FSD approved for Europe, a notable milestone that should spur even more vehicle sales in the region.
Tesla is launching a crazy Full Self-Driving free trial, which will enable owners who have not purchased the suite outright to try it for 30 days.
There are a handful of stipulations that will be needed in order for you to qualify for the free trial, which was announced on Thursday night.
Tesla said the trial is for v14, the company’s latest version of the Full Self-Driving suite, and will be available to new and existing Model S, Model 3, Model X, Model Y, and Cybertruck owners, who will have the opportunity to try the latest features, including Speed Profiles, Arrival Options, and other new upgrades.
🚨 Tesla is launching a free 30-day trial of Full Self-Driving in North America for owners.
It includes every model, but you need v14.2 or later, and you cannot have already purchased the suite outright. https://t.co/8CNmxxOkVl
— TESLARATI (@Teslarati) November 27, 2025
You must own one of the five Tesla models, have Full Self-Driving v14.2 or later, and have an eligible vehicle in the United States, Puerto Rico, Mexico, or Canada.
The company said it is a non-transferable trial, which is not redeemable for cash. Tesla is reaching out to owners via email to give them the opportunity to enable the Full Self-Driving trial.
Those who are subscribed to the monthly Full Self-Driving program are eligible, so they will essentially get a free month of the suite.
Once it is installed, the trial will begin, and the 30-day countdown will begin.
Tesla is making a major push to increase its Full Self-Driving take rate, as it revealed that about 12 percent of owners are users of the program during its recent earnings call.
Tesla CFO Vaibhav Taneja said during the call:
“We feel that as people experience the supervised FSD at scale, demand for our vehicles, like Elon said, would increase significantly. On the FSD adoption front, we’ve continued to see decent progress. However, note that the total paid FSD customer base is still small, around 12% of our current fleet.”
Earlier today, we reported on Tesla also launching a small-scale advertising campaign on X for the Full Self-Driving suite, hoping to increase adoption.
Tesla Full Self-Driving warrants huge switch-up on essential company strategy
It appears most people are pretty content with the subscription program. It costs just $99 a month, in comparison to the $8,000 fee it is for the outright purchase.
Tesla Model 3 and Model Y named top car buys in Norway
Tesla Giga Berlin is still ramping production to meet Model Y demand: plant manager
