If you're scanning the market for a non-Tesla electric car, now might be the right moment to delve deeper. According to a recent study by the automotive research website iSeeCars, six out of the 20 new cars on the market priced either below or near the MSRP are battery electric vehicles.
Models like the Hyundai Ioniq 5 and the Kia EV6, which fared exceptionally in InsideEVs reviews, are going for 1.9% and 2.5% lower than their MSRPs on average—select local dealers might even offer more discounts. The Hyundai Kona Electric has the steepest price-to-MSRP difference. At an average price of $36,211, it’s priced 4.6% lower than the MSRP. The Volkswagen ID.4. is sailing in the same boat. At an average price of $48,740, it costs 3.6% below MSRP. Note that these prices might vary regionally.
| EVs Priced Below MSRP (iSeeCars-Jan 2024) | Price vs MSRP | Average Price | MSRP |
| Hyundai Kona Electric | -4.6% | $36,211 | $37,964 |
| Volkswagen ID.4 | -3.6% | $48,740 | $50,547 |
| Ford F-150 (Hybrid) | -3.3% | $82,132 | $84,910 |
| Kia EV6 | -2.5% | $52,004 | $53,315 |
| Hyundai Ioniq 6 | -2.4% | $47,691 | $48,861 |
| Chrysler Pacifica PHEV | -2.0% | $53,263 | $54,329 |
| Nissan Ariya | -1.9% | $50,751 | $51,734 |
| Hyundai Ioniq 5 | -1.9% | $50,477 | $51,455 |
Even the Hyundai Ioniq 6 and Nissan Ariya have undergone price cuts this year, iSeeCars said. These EVs don't qualify for the tax credits. Moreover, with a slow-than-expected demand, dealers are trying to clear them off their lots with discounts (Main image shows starting MSRPs as of Feb 13, 2024). Hyundai is even offering a $7,500 retail cash bonus on the Ioniq 5, Ioniq 6, and the Kona Electric through February 29, 2024, to remain competitive.
“While finding a discount on a new vehicle remains a challenge, it’s much easier for EV, large truck, and SUV shoppers,” said Karl Brauer, an executive analyst at iSeeCars. “The market appears to have reached a saturation point for EVs, with both prices and sales struggling compared to a year ago.”
But EVs are not ubiquitously cheaper. Some premium EVs are commanding a higher price. The Mini Electric and the Porsche Taycan (sedan and Turismo models) are 20% pricier than their respective MSRPs.
“It’s interesting to see one Mini and two Porsche EVs in the top 20 list when EVs make up a majority of the top 10 lowest-priced list,” said Brauer. “Mini and Porsche are modulating their EV production to better align with demand.”
Last year, 43 electrified models qualified for the federal tax credit, but this year only about 20 models qualify due to updated regulations. In 2024, any models with parts sourced from a so-called foreign entity of concern (FEOC) like China, Russia, North Korea, etc, are blocked from receiving federal tax credits.
Changing regulations and evolving battery and raw material prices are expected to continue causing EV prices to fluctuate. And as new models pour onto the streets increasing the competition, it's likely that we're only witnessing the initial stages of EV price competition, despite the brutal price wars of 2023.
