Automakers and car dealers are offering huge discounts on electric vehicles, particularly luxury models, as a result of an increasing market competition and consumer reluctance.

Early adopters, those who feel their cars must have the latest technology, already own EVs, said Joseph Yoon, consumer insights analyst at Edmunds. Increasingly, automakers must appeal to mainstream consumers with other priorities.

Consumers are increasingly interested in hybrid models – with a trusted technology that doesn’t require charging stations – according to Pat Ryan, CEO of CoPilot, a car shopping app. Unlike EVs, hybrids move quickly off dealer lots and sell for more than their sticker prices, according to Edmunds data.

In the past, Tesla had largely controlled the EV market. As it tries to maintain its outsized market share with an aging model lineup, Tesla is aggressively cutting prices, adding price pressure for EVs. Over the past year, the base sticker price of a Tesla Model 3 has decreased by 17%. Other manufacturers, especially luxury brands, are now selling EVs at huge discounts as well.

The average electric vehicle purchased in the United States, excluding Teslas, went for about $1,500 over sticker price in September 2022. (Remember, the manufacturer’s suggested retail price, or sticker price, is only an estimate; the final selling price is usually higher or lower.) One year later, the average EV sold for about $2,000 below sticker price, according to Edmunds. Compared with the overall industry, that’s a much bigger change and a much deeper discount. According to Edmunds, the average new vehicle sold for only $900 below sticker price last month.