We call it the “Field of Dreams” moment.

Deep price cuts and ample availability could provide a boost to the electric vehicle market, which already saw record sales in 2023.

Cox Motors mentioned Kelley Blue Book found that the June average transaction price for a new electric vehicle ($53,438) was down 20% from a peak of $66,390 in June 2022.

Kelly Blue Book (@ Kelly Blue Book) chirp About Tesla cuts as examples of lower electric vehicle prices in June.

As indicated by the financial timesMany of the price changes are due to Tesla’s decision to cut its prices by up to $13,000 in January. This sparked a price war between the manufacturers.

With Ford making the next big move by lowering the purchase price of its Mustang Mach-E, Tesla is responded By making the Model S and Model X cheaper in March.

Ford Makes More Price Cuts, Offering Savings Between $6,079 And $9,979 On Seven F-150 Lightning Models, The New York Times mentioned in July. New York Times Business

(@nytimesbusiness) too chirp about this.

General Motors is also among the electric vehicle manufacturers that make their models more affordable price cuts For the Bolt model announced in June.

according to Cox Motorsnearly 300,000 new electric vehicles were sold in the United States during the second quarter of 2023. That represents a record for any quarter and an increase of nearly 50% from the same time last year.

Cost reductions in raw materials needed to make electric vehicle batteries, such as lithium, nickel and cobalt, have also allowed the savings to be passed on to consumers. Tesla CEO Elon Musk was among those who welcomed the news. Pointing on the company’s earnings call that the lithium market has gone “completely crazy out there for a while.”

Although there are positive signs in the electric vehicle market, supply still far outstrips demand.

“Demand is not keeping pace with production, which is the opposite of what it was a year ago,” said Michele Krebs, executive analyst for Cox Automotive. grinding. “We call it a ‘Field of Dreams’ moment. Automakers are building more, but not enough consumers are coming into the field.

But Krebs also noted that availability isn’t a bad thing compared to the broader market.

“A year ago, the average price of electric vehicles was higher than the average price of a luxury vehicle. Today, with increasing inventory and availability, electric vehicle prices are approaching the industry average.” added.

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