The face-off First Tesla cut prices on some of its battery-powered electric cars. Then Ford dropped the cost of the Lightning — the electric version of its best-selling F-150 pickup truck — by nearly $10,000 on some models. Current prices for the Lightning range from $49,995 to $91,995, depending on the model and trim levels. Tesla’s base prices now start at $40,240 for the Model 3 and go up to $108,490 for the Model X Plaid.
If you’ve been thinking about an electric vehicle, you might be wondering if those cheaper prices, and the $7,500 federal tax breaks on some EVs, mean it’s time to take a closer look. So let’s examine: Which one costs more, an electric vehicle or a gas-powered car? But if you look at the total cost of ownership over the life of the car, an EV can often be less expensive than a gas guzzler.
Where you live can play a big role when comparing prices on EVs vs. ICE vehicles. That’s because in addition to the federal $7,500 tax break that some EVs qualify for, there are also some state and local financial incentives for EVs. In some cases, your local power company may give you money for installing an electric-car charger. Both Consumer Reports and Kelley Blue Book have tools for finding these incentives in your area.
Unfortunately for budget-conscious EV shoppers, General Motors GM is ceasing production on the cheapest EV in the U.S., the Chevy Bolt, which sells for $26,500.