# US EV prices rise for the first time in 2026 as discounts shrink Reduced manufacturer incentives and tighter supply drive price increases - **Source:** [The Next Web](https://brifing.si/source/afe24b20-b275-4c19-b9a6-8bb3c8babae7) - **Published:** 2026-08-14 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/efa59cc4-d6d9-4b82-a68c-ef2c66079fe3 ## First price increase of 2026 In July 2026, the average electric vehicle price in the US reached $56,126, marking a 1.6% year-over-year increase. This represents the first price hike recorded in 2026. According to Kelley Blue Book data, prices had been declining monthly since December 2025. Compared to June, prices rose by 1.2%. ## Sharp decline in discounts Manufacturer incentives on EVs dropped to $6,626 in July, a 24.3% decrease from the same period last year. This led consumers to pay prices closer to MSRP. However, EVs still receive significantly higher discounts compared to gasoline-powered vehicles, with incentives averaging 11.8% of transaction prices versus 6.4% industry-wide. ## Supply contraction impact The price increase follows manufacturers cutting production. Over a dozen EV models have been discontinued in the US market in 2026. Tariffs, lost tax credits, and rising import costs have reshaped market dynamics. Sam Abuelsamid from Telemetry notes that automakers now have less excess EV inventory, reducing pressure to offer large incentives. ## Luxury segment influence K.C. Boyce from research firm Escalent revealed that luxury car buyers are disproportionately choosing electric models. This trend pulls up average EV prices independently of broader market movements. While EVs still represent a small portion of total sales, they're gaining significant share in the luxury segment. ## Affordable models coming More affordable EV options like Slate's $24,950 base pickup and Ford's Fathom pickup starting at $28,350 are expected to begin deliveries later this year. Escalent research shows consumers define an affordable new car as priced between $32,000-$48,000, putting these upcoming models well within that range. ## Charger installation effect An interesting Escalent finding shows that including a home charger and its installation with a new EV affects purchase decisions as much as an $8,000 price reduction. This significantly alters consumers' perception of total ownership costs, highlighting how infrastructure support can boost EV adoption independent of vehicle pricing. ## Overall market trend Beyond EVs, the entire automotive market is experiencing price increases. The average new vehicle price reached $49,855 in July 2026, up 1.9% year-over-year and marking the highest level of 2026. This aligns with broader inflation trends and rising supply chain costs affecting the industry. ## Manufacturers' pricing power Telemetry's market research indicates that reduced EV inventories have given automakers greater pricing power. They no longer need to offer substantial discounts or engage in price negotiations as frequently. Industry analysts view this as a sign of the EV market beginning to mature, moving beyond the heavy discounting phase of early adoption. ## Sources covering this story - https://thenextweb.com/news/us-ev-prices-rising-july-2026-incentives-supply — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._