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Since 2018, electric vehicle prices have fallen by 25 percent, making them more affordable than ever. The average price difference between internal combustion engines and electric vehicles in the US is now just 15 percent.
For years, along with legitimate concerns about range, charging speed and infrastructure, buyers who chose not to buy electric cars often cited the high price of “green” cars as one of the main factors. But a new study shows that electric cars are now more affordable than ever: prices adjusted for inflation have fallen by a solid 25 percent since 2018.
In fact, according to a report by industry analysts Jato Dynamics, falling EV prices have led to the narrowest gap between EVs and internal combustion engines ever. The gap was around 50 percent in the U.S. by 2021, before a glut of new EVs and Tesla’s aggressive price cuts narrowed it to 33 percent in 2022. It was just 15 percent last year.
By comparison, in Europe, the price gap between electric and combustion engine cars was 27 percent in 2021 and actually rose to 29 percent in 2023 before falling back to 22 percent last year.
