The electric vehicle (EV) market is undergoing a fascinating transformation as we head into late 2025. While prices have softened, incentives are on the rise, creating an intriguing dynamic for potential buyers.
According to Kelley Blue Book's initial estimates, EV sales in November fell by a significant 40% compared to the previous year, with a 5% drop from October's figures. The average transaction price (ATP) for a new EV was $58,638, a modest increase of 3.7% year-over-year, but a slight decrease of 0.8% from October. However, the real story lies in the incentives: discounts averaged a substantial 13.3% of ATP, a notable jump from the previous month.
Tesla, the industry leader, has not been immune to these shifts. The automaker's ATP in November was $54,310, a 1.7% decrease from the same period last year, but a 1.5% increase month-over-month. Sales have declined for two consecutive months, with a 22.7% year-over-year drop, primarily due to a decrease in demand for the Model 3. Model 3 sales took a significant hit, falling 42.1% compared to November 2024 and 11.9% from October. On the other hand, the Model Y, the top-selling EV in the US, saw its prices increase by 0.9% year-over-year and month-over-month. Model Y sales were slightly lower than the previous November, down 0.5%, but rose 2.5% compared to October.
The Tesla Cybertruck, once a top-seller in the premium price range, has shown signs of cooling off. Sales of the Cybertruck fell to 1,194 units in November, the lowest monthly total so far in 2025. Its average price, at $94,254, was higher both year-over-year and compared to October.
These numbers highlight a transitional phase in the EV market. Prices are becoming more affordable, incentives are growing, yet buyers remain cautious as the industry navigates its next chapter.
Erin Keating, an executive analyst at Cox Automotive, sheds light on the situation: "It's crucial to understand that the KBB ATP reflects purchases, not availability. Nearly half of new-vehicle buyers are over 55 and in their peak earning years. These buyers are more inclined to opt for a high-end SUV rather than an affordable option. In November, the over-$75,000 price point saw more volume than the under-$30,000 range."
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(FTC Disclosure: We use income-earning auto affiliate links. More info: https://electrek.co/about/#affiliate)
