(Photo: Tesla)
Incentive packages for all vehicles were higher in August, but EV packages continued to trend above industry averages, Kelley Blue Book reports.
The average new car incentive package in August equaled 7.2% of the average transaction value (ATP), up from 7.0% in July to the highest level since the first half of 2021. Year-on-year, incentive spending was 4.8% ATP.
EV earnings in August continued to trend above industry averages, at 13.3% of ATP, higher than July and at the highest point for 2024. On average, EV sales last month were more than 80% higher than gas sales.
July's EV ATP, at $56,575, was slightly higher than July's revised ATP of $56,435 but down year-over-year by more than 1.2%, suggesting that EV price declines are slowing. Last year, in August 2023, EV ATPs were down year-over-year by about 13%.
The average price of a new Tesla was down slightly in August compared to July but was up 10.7% year over year at $59,138.
The Tesla Model Y, the best-selling EV in the US, had an ATP of $52,482 in August, which was lower than in August 2023 but was higher for the sixth month in a row. Cybertruck ATPs rose month-over-month in August again, increasing for the third straight month and reaching a new high of $112,241. With sales averaging 4,784 last month, the Cybertruck continues to be the best-selling product in the $100,000-plus market.
Electrek's Take
As my colleague Jameson Dow wrote yesterday, “Battery electric vehicle sales, while continuing to grow, posted a lower year-over-year percentage growth rate than in previous years.” Kelley Blue Book Cox Automotive senior analyst Erin Keating said “dealers are telling us that the dealership is moving very quickly…”
Remember when there were no cars at dealerships a few years ago, due to pandemic supply issues, and car dealers were making tons of money because of high demand and low supply? Yes, that's over.
So now, due to high interest rates and excess inventory, dealers are trying to sell cars with dealer benefit packages. That doesn't mean there's a decline in EV sales – it just means they're using the tool they have to move the product. There is a slow growth in EV sales for the reasons I just gave (and Jameson explained in more detail in his post).
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