Tesla Inc.’s average transaction price (ATP) for its vehicles is on the rise again, reaching its highest point since February 2023, according to Kelley Blue Book. This surge in price comes after a dip to its lowest point in December 2023.
The automotive research company reported that the average transaction price of an EV in July was $56,520. Tesla, the leading electric vehicle manufacturer, saw its ATP reach $59,593 in July. This increase can be attributed to the success of the company’s high-end Cybertruck, as well as price hikes for the popular Model Y and Model 3.
The Cybertruck, Tesla’s futuristic pickup truck, has been a hot commodity, even with its hefty price tag. Kelley Blue Book noted that the Cybertruck was the top-selling vehicle in the U.S. last month in the price range exceeding $100,000. While Tesla has indicated that more affordable versions of the Cybertruck will be launched in the future, currently, only the pricier and limited-production Foundation series is available, starting at $99,990.
The Model Y and Model 3 also saw significant price increases in July. The average selling price for the Model Y was $52,055, representing a 5% increase from January, while the Model 3’s average price reached $53,878, a remarkable 30% jump from the beginning of the year.
Tesla’s price adjustments throughout 2024 have been more measured compared to the rapid price cuts seen in 2023. These cuts were aimed at boosting deliveries but significantly impacted the company’s profit margins. Currently, the Model Y starts at $44,990, while the Model 3’s starting price is $38,990. These two models are the core of Tesla’s sales, accounting for a massive 95% of the company’s global deliveries in the second quarter, with a total of 422,405 units sold.
Despite Tesla’s success in the premium EV segment, the overall average transaction price for new vehicles in the U.S. remains significantly lower, at $48,401. This data highlights the ongoing price gap between electric vehicles and combustion engine vehicles. While EVs are becoming more mainstream, the higher cost of entry remains a barrier for many consumers.
