Tesla Cybertruck Boosts U.S. EV Prices: May Report

What?

The Tesla Cybertruck made a significant impact on the electric vehicle (EV) market in the U.S. in May, despite only around 3,000 units being sold. Data from Cox Automotive revealed that the introduction of the angular pickup truck caused the average EV transaction price in the U.S. to rise by 3.1% compared to April. The surge in EV prices was primarily attributed to the Cybertruck, with each unit selling for nearly $110,000, ultimately affecting the overall pricing trend in the EV segment.

Why does it matter?

The relatively low sales volume of the Cybertruck had a substantial influence due to Tesla’s dominant position in the EV market, accounting for almost 50% of all EV sales in the U.S. While models like the Model 3 and Model Y are priced around $40,000, the average selling price of the Cybertruck in May was a staggering $108,667, significantly impacting Tesla’s average transaction price, which increased by 3.1% to $57,369 month-over-month. This surge in Tesla’s pricing also contributed to a 2.6% average transaction price increase for the entire EV industry in May. Interestingly, without Tesla’s pricing impact, EV prices actually decreased by 4.1% year-over-year.

How is it going to shape the future?

Even though EVs remain more expensive on average than traditional gas-powered vehicles by approximately 17%, the market is witnessing an influx of EVs with over 300 miles of range at prices below the industry average of $48,389 in May. Particularly with tax credits available for models like the Chevrolet Equinox EV, Tesla Model 3, and Tesla Model Y, which retail for less than the average price, consumers have more affordable options in the EV market. As more automakers such as Kia, Chevrolet, and Ford introduce competitive EV models, the landscape of EV pricing is expected to become more diverse and accessible to a wider range of consumers, ultimately driving the transition towards electric vehicles in the automotive industry.