EV Price Cuts: Which Automakers Are Slashing Prices?

If you have been waiting for the right moment to buy an electric vehicle, 2024 might be your year. Automakers are scrambling to stay competitive with Tesla, leading to massive price cuts across the industry. Let us look at exactly which car brands are dropping their EV prices and how much you can save.

The Tesla Effect on the Market

In 2023, Tesla ignited an industry-wide price war by repeatedly lowering the sticker prices on its best-selling Model 3 sedan and Model Y SUV. Because the Model Y dominates global EV sales, traditional automakers found themselves in a tough spot. To prevent customers from defaulting to Tesla, competing brands had to adjust their pricing strategies for 2024. The result is a wave of major discounts, cash rebates, and new base models designed to attract budget-conscious buyers.

Ford Slashes Prices on the Mustang Mach-E and F-150 Lightning

Ford made headlines in early 2024 by announcing heavy discounts on its flagship electric crossover to clear out inventory. The 2023 Mustang Mach-E saw price cuts of up to $8,100 depending on the trim level.

• Mach-E Premium: The extended-range Premium model dropped by a massive $8,100.
• Mach-E Select: The base Select trim saw a reduction of $3,100, bringing the starting price of the vehicle down to roughly $39,895 before taxes and delivery fees.

Ford also reduced the price of the F-150 Lightning electric pickup truck. In April 2024, the automaker cut prices on certain Lightning trims by up to $5,500. The popular Flash trim, which includes an extended-range battery and a tech-heavy interior, dropped from $73,495 to $67,995.

Nissan Drops the Ariya Starting Price by $6,000

Nissan is fighting hard for market share in the electric crossover segment. To make the 2024 Nissan Ariya a better financial alternative to the Tesla Model Y, Nissan slashed the starting price by up to $6,000 across its entire lineup.

The base Ariya Engage front-wheel-drive model now starts at $39,590. The top-tier Platinum+ e-4ORCE all-wheel-drive model also saw a significant reduction, dropping its starting price down to $54,190. These revisions make the Ariya one of the most aggressively priced electric SUVs currently sitting on dealer lots.

Chevrolet Lowers the Blazer EV by Over $6,000

General Motors had a bumpy start with the Chevrolet Blazer EV due to software glitches in late 2023. After a brief stop-sale order to fix these issues, Chevrolet brought the Blazer EV back to dealerships in early 2024 with a much more attractive price tag.

Chevrolet reduced the sticker price of the Blazer EV by up to $6,520. The LT All-Wheel Drive model now starts at $50,195, while the sportier RS Rear-Wheel Drive model dropped to $56,170.

Adding to these savings, the Blazer EV regained its eligibility for the full $7,500 federal EV tax credit in early 2024. Under new rules, buyers can now apply this credit directly at the dealership as a point-of-sale discount. This effectively brings the base price of the LT model closer to $42,695.

Hyundai and Kia Offer Massive Cash Rebates

Because Hyundai and Kia assemble many of their electric vehicles outside of North America, models like the Hyundai Ioniq 5 and Kia EV6 do not qualify for the federal EV tax credit when purchased outright. To keep these highly rated cars competitive, the South Korean automakers took matters into their own hands.

Throughout 2024, Hyundai and Kia have offered up to $7,500 in retail bonus cash to mimic the federal tax credit. This cash rebate applies to the Hyundai Ioniq 5, the Hyundai Ioniq 6 sedan, and the Kia EV6. When you combine these manufacturer rebates with aggressive local dealership discounts, buyers are easily securing thousands of dollars in savings.

Luxury Brands Join the Fight: Lucid and Rivian

Price cuts are not limited to mainstream consumer brands. Luxury electric vehicle startups are also adjusting their pricing structures to boost sluggish sales and compete with high-end Tesla models.

Lucid Motors dropped the price of its luxury sedan, the Lucid Air, by up to $8,000 in early 2024. The entry-level Air Pure rear-wheel-drive model now starts at an enticing $69,900. The mid-level Air Touring dropped down to $77,900.

Rivian also made its vehicles more accessible to new buyers. Instead of flat price cuts on existing high-end models, Rivian introduced new Standard battery pack options for the R1T pickup and R1S SUV. This strategic move lowered the base entry price of the R1T to $69,900 and the R1S to $74,900. Buyers who want the Rivian brand without paying for maximum battery range can now save over $3,100 compared to previous base models.

Why Are Automakers Cutting EV Prices in 2024?

Several economic factors are driving these massive discounts alongside the Tesla price war.

First, dealership inventory levels are high. Car lots have more electric vehicles sitting unsold than they did a year ago. To move these vehicles and make room for newer models, automakers have no choice but to incentivize buyers with cash on the hood.

Second, high auto loan interest rates have made financing any new car incredibly expensive. An auto loan with an 8% interest rate drastically increases a buyer’s monthly payment. Automakers are offsetting these painful interest rates by lowering the overall sticker price of the vehicles.

Frequently Asked Questions

Do EV price cuts affect the federal tax credit? Yes, they can. The federal EV tax credit has strict price caps. An electric SUV cannot cost more than $80,000, and an electric sedan cannot cost more than $55,000 to qualify. When automakers cut prices to fall below these caps, it makes the vehicle eligible for the $7,500 credit, saving the buyer even more money.

Can I get the federal tax credit upfront in 2024? Yes. Starting in 2024, the IRS allows buyers to transfer their EV tax credit directly to a registered dealership. This means you can use the $7,500 credit as a direct down payment at the point of sale, rather than waiting to claim it on your tax return the following year.

Are used electric vehicle prices dropping as well? Yes. When automakers cut the prices of brand-new electric cars, the value of used electric cars drops almost immediately. If a new Tesla Model Y costs significantly less today than it did a year ago, a used Model Y must be priced even lower to attract buyers. This makes 2024 an excellent time to shop for a used EV.