EV prices are rising again as automakers pull back on discounts

The average transaction price for EVs rose for the first time in six months, according to KBB.

Justin Sullivan/Getty Images The average transaction price for EVs was $56,126 in July, according to Kelley Blue Book.

That's a 1.6% increase compared to July 2025.

It's the first EV price rise of 2026, KBB said.

There are two main reasons: fewer EVs on dealership lots and higher gas prices.

For the first time in 2026, EV prices are rising.

In July, the average transaction price for a new fully electric vehicle jumped to $56,126, per Kelley Blue Book.

That's a 1.6% increase compared to the same month in 2025, and a 1.2% rise compared to June.

The increase breaks a monthslong trend.

EV prices had been falling since December.

After the $7,500 federal tax credit for US-made clean vehicles expired in late 2025, automakers leaned more heavily on their own incentives to prop up EV sales amid declining demand .

Those manufacturer discounts helped put downward pressure on EV transaction prices through the first half of the year.

Sam Abuelsamid, the vice president of market research at Telemetry, told Business Insider that July's pricing U-turn stems from two factors: tighter EV supply as car companies discontinue products and renewed interest in electric cars as gas prices remain high .

"Automakers have less excess inventory of EVs," he said.