EV sales just hit their best month since federal tax credits ended

Tesla Model 3 (Source: Tesla)

New EV prices continued to slide in May, even as sales climbed to their strongest level since the Trump administration killed federal EV tax credits last fall.

According to new Kelley Blue Book data, the average transaction price (ATP) for a new electric vehicle fell to $54,532 in May. That’s down 4% from a year ago and marks the 11th straight month of year-over-year declines in EV prices.

At the same time, EV demand appears to be holding up. Early estimates suggest more than 85,000 EVs were sold in May, making it the strongest month for EV sales since federal tax credits were eliminated at the end of the third quarter of 2025.

Incentives also remained a major factor in keeping EV prices competitive. In May, automakers spent an average of 14% of a vehicle’s transaction price on incentives, or about $7,600 per vehicle. That’s nearly double the industry average and essentially unchanged from April.