After years of capital-intensive development, falling lithium prices and a shift to focus more on the mass market with affordable options, a growing number of long-range electric vehicles are now finally cheaper to purchase than average gas cars in the U.S.
The average transaction price for new vehicles in April 2024 was $48,500, according to Cox Automotive data. As Bloomberg first reported, there’s an increasing crop of long-range EVs with more than 300 miles of range that are considerably cheaper than that.
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Lack of affordability hampers wider EV adoption. But that's changing.
For the longest time, price parity among EVs and gas cars seemed like a distant dream. But as automakers put their weight behind affordable, long-range EVs, there's an increasing number of highly compelling models from GM, Hyundai and Tesla that are just hard to ignore.
This group of EVs includes the Hyundai Ioniq 6, whose second-to-entry-level SE trim has an MSRP of $42,450 before taxes and fees and delivers an impressive EPA range of 361 miles on a full charge. InsideEVs found that it’s among the best overall EVs on the market today and one that’s the easiest to recommend.
Over at Tesla, the Model Y also falls in a similar category in terms of price, range and value. The electric crossover starts at $44,900 before taxes and fees and offers an EPA range of 320 miles. Factor in the $7,500 federal tax credit and that price drops to well below the average transaction price of a car in the U.S.
One new EV that promises to be the frontrunner among long-range, relatively affordable EVs is the Chevy Equinox EV. The currently available 2LT trim starts at $42,000. If you qualify for the $7,500 tax credit, you could drive one home for under $35,000. Bloomberg even calls it "the standard bearer for long-range EVs with an affordable price."
There’s a 1LT trim coming later this year that would start at $33,600 excluding fees and tax credit. This trim will also deliver 319 miles of EPA range and is poised to become the torch bearer of affordable, 300-mile EVs.
Broadly speaking, EVs are still about 15% more expensive than gas cars, as per Cox Automotive. But that’s starting to change as brands are increasingly focusing on the mass market with affordable options to become profitable and meet stricter emissions targets that kick in 2026 onwards.
It’s worth noting that these prices could vary regionally and your personal income situation would determine your tax credit eligibility.
But the number of affordable, presumably long-range EVs is poised to increase in the coming months and years. Stellantis announced recently that a $25,000 Jeep was imminent, GM is working on the next generation Bolt EV which it has claimed would be the most affordable EV when it goes on sale in 2025. Affordable Teslas, Fords, and Kias are also on their way.
