Tesla’s average transaction prices rose in March even as the automaker’s first-quarter U.S. sales declined year over year, according to a monthly pricing update released Wednesday by Cox Automotive’s Kelley Blue Book.
The ATP reached $54,582 last month, up 3.5% from a year ago ($52,742) and higher than in February when the figures stood at $52,247.
“Tesla’s sales in Q1 continued their long-term decline after peaking in Q1 2023,” Cox Automotive said in the report. “Estimates from Kelley Blue Book suggest Tesla’s sales in Q1 2025 were lower year over year by more than 8%.”
The broader electric vehicle (EV) market saw ATPs rise to $59,205 in March, a 7.0% year-over-year increase and nearly 25% above the industry-wide average of $47,462. The price gap between EVs and internal combustion engine (ICE) vehicles continues to widen even as EV incentives remain higher than average.
“In March, the average incentive package for an EV was 13.3% of ATP, down from the revised 14.3% in February,” Kelley Blue Book said. That compares to the industry average of 7.0% of ATP — equivalent to about $3,339 per vehicle — which has held steady for the past month.
Tesla shares are sinking 9% as of the time of writing after U.S. President Donald Trump said the tariff pause does not apply to imported vehicles and parts. On Wednesday, the stock soared 22.7% following Trump’s announcement.
Overall vehicle sales surged in March to 1.59 million units — the best monthly result in nearly four years — as buyers moved to lock in purchases ahead of expected price increases driven by new tariffs.
“Sales in March were nearly 30% higher than in February, as many consumers rushed to buy vehicles before the expected tariff-driven price hikes took hold,” Cox said.
The U.S. administration’s recently implemented 25% tariff imported vehicles is expected to have a disproportionate impact on the most affordable segment of the market. In March, just 26 models had ATPs below $30,000, accounting for roughly 14% of all new U.S. vehicle sales.
Many of these — including the Chevy Trax, Honda HR-V, Mazda3, and Kia Soul — are assembled outside the U.S. and are now subject to higher duties.
Among automakers, Infiniti, Lincoln, Mazda, Porsche, and Volvo recorded the sharpest year-over-year price gains in March, with Infiniti ATPs up 18.9% and Porsche up 11.5%. Meanwhile, Jeep, Ram, and Mercedes-Benz were among the few brands to see lower ATPs, falling 10.6%, 5.8%, and 4.7%, respectively.
Luxury Cars received the highest average incentives in March among vehicle segments, followed by Compact SUVs and Full-Size Pickups. The least incentivized segments were High-Performance Cars (2.6% of ATP), Full-Size SUVs (3.8%), and Luxury Full-Sized SUVs (4.5%).
As automakers adjust to post-tariff conditions and consumers face elevated pricing pressure, the spring selling season is shaping up to be a test of affordability and brand loyalty — particularly in the EV segment, where demand dynamics remain fluid and highly incentive-dependent.
U.S. stocks jumped on Wednesday afternoon after President Donald Trump announced a 90 day pause on the recently announced tariffs with Tesla closing 22.7% higher, its second best day since it went public 15 years ago.
However, the White House said the pause does not apply to the 25% tariffs imposed by the US to all imported vehicles and auto parts.
