Why I Compile a List of the Cheapest Electric Vehicles
This article will rank the cheapest new electric vehicles in 2025 sold in the U.S. market (as of Jan., 2025), including a few prior year releases that are still for sale this year. With all of the recent changes to the electric vehicle tax credits (a must read for those interested in purchasing an electric vehicle in 2025 and beyond), anyone in the market for a new vehicle could benefit from knowing what the cheapest EVs in 2025 are. And, why wouldn’t you have at least a little interest in going electric at this point? As most of us recently experienced, being captive to gas price profiteering and politics is not a fun place to be.
The incentive to go electric these days is no longer just avoidance of the negative – which brings me to the other reason to share this list of the cheapest electric cars. We’re seeing automakers deliver on meeting consumer demand for affordable, efficient, attractive, high-range new electric cars, trucks, crossovers, and SUVs.
The Chevy Equinox jumps up to the #3 spot in the cheapest EV ranking for 2025. It may be the cheapest when you factor in the federal tax credit. It will likely become a top 5 EV seller in the U.S market in 2025.
As a result of these 2 trends converging, electric vehicle (excluding PHEV) sales increased to 1.3 million vehicles last year in the U.S. market, an increase of 7.3% year/year, for an 8.1% market share. With exciting new electric vehicle models, including plenty of pickup trucks, crossovers, and SUVs hitting the market, Clean Vehicle tax credits from the Inflation Reduction Act, and many Americans still having PTSD on high gas prices, the shift towards electric vehicles should continue in 2025.
Many EVs are Now Affordable for the Mass Market
I’ve always been a fuel economy geek and have kept a watchful eye on the most efficient vehicles over the past decade plus. When I first started compiling that list, every single vehicle was a gasoline-electric hybrid (primarily gasoline-powered with a tiny electric-only range, e.g. the original Toyota Prius) or simply a small, efficient gas-powered vehicle with a tiny combustion motor. Today, every vehicle on that list is 100% powered by electric batteries only. That will be the case for the next few decades, until hydrogen or another yet to be imagined power source technology overtakes electricity.
What had always bothered me with electric vehicles in the past, however, was the astronomical prices of many of those vehicles. This is a personal finance website, after all, and transportation costs have quietly become the second highest expense category per household in the U.S., on average. This is why I’ve also kept track of the cheapest new cars. As a personal finance writer, I should note that electric vehicles are typically still more expensive than their gasoline counterparts in terms of purchase price.
EV affordability is quickly changing, particularly with the expanded federal tax credits and an increasing number of state electric vehicle tax credits. And, total cost of ownership continues to tilt in the favor of electric vehicles, particularly with gas prices increasing and the ongoing cost of ownership of electric vehicles being lower than gasoline-powered vehicles. All of these emerging trends have combined to make many electric vehicles affordable for the mass market – starting with this list of the cheapest electric cars, trucks, and SUVs here.
Don’t Ignore the Enhanced Federal Energy Tax Credits & New Rebates from the Inflation Reduction Act
If you’re interested in EVs, don’t ignore the new federal energy tax credits and rebates. There are significant updates that resulted from the Inflation Reduction Act available (including solar panels, electrical panels, battery storage, and EV charging) that could make the prospect of electric vehicle ownership an even bigger cost-saving venture. The linked-to article is a complete guide to the 2 improved energy tax credits and 2 new energy rebates available to Americans.
New Cheap(ish) Electric Vehicles Launching in 2025
If this list of the cheapest electric vehicles in 2025 was made at the end of the year, instead of the beginning, it might look quite different. At least 2 EVs are expected to launch soon and also be eligible for a $7,500 tax credit that would likely place them on the list of cheapest EVs:
- 2025 Kia EV6: the base Light RWD model has an MSRP of $43,995. A $7,500 tax credit would bring the net price down to $36,495.
- 2026 Chevy Bolt: is expected to launch in late 2025 and will likely be priced lower than the Chevy Equinox (which is #3 on this list pre-tax credit, #1 with tax credit). It should also be eligible for the $7,500 federal tax credit (if it still exists at that point).
Also, a few vehicles narrowly missed the 2025 list that could also be worth checking out, as they are currently eligible for tax credits that would place them on the list:
- Chevy Blazer EV: the base LT model has an MSRP of $45,995. A $7,500 tax credit would bring the net price down to $38,495.
- Tesla Model 3: the base Long Range RWD model has an MSRP of $42,490. A $7,500 tax credit would bring the net price down to $34,990.
- Tesla Model Y: the base Long Range RWD model has an MSRP of $44,990. A $7,500 tax credit would bring the net price down to $37,490.
In my view, all 3 of these vehicles are superior to every vehicle on the list (possibly excluding the Chevy Equinox EV).
Falling off from last year’s list of the cheapest EVs are the following:
- #9: Hyundai Ioniq 5: price increase year/year.
- #7: Tesla Model 3: price increase year/year.
- #6: Volkswagen ID.4: details for 2025 model not yet released.
- #4: Mini Cooper Electric Hardtop: details for 2025 model not yet released.
- #2: Chevy Bolt EUV: details for 2026 model not yet released.
- #1: Chevy Bolt EUV: details for 2026 model not yet released.
Electric Vehicle Price Ranking, Efficiency, Range, & Other Metrics
For the specs listed in the ranking below:
- efficiency (MPGe, or miles per gallon equivalent), CO2 emissions (both tailpipe and upstream), and annual energy (electricity) cost metrics were gathered from the EPA’s fueleconomy.gov site.
- Upstream (non-tailpipe) CO2 emissions are national averages (assuming the individual does not have their own electricity generated and is purchasing from a utility), and is comparable to a new gasoline-powered vehicle’s upstream and tailpipe average emissions of about 400 grams/mile.
- Annual energy costs listed are based on 45% highway, 55% city driving, 15,000 annual miles and $0.15 per kWh of electricity.
- For MSRP, I have listed the base price (including destination charges) prior to any federal or state tax credits. These prices are direct from the automaker.
“Clean Vehicle” EV Tax Credit Details for 2025
Note that the (up to) $7,500 electric vehicle tax credit, now referred to as the “clean vehicle tax credit” went through a number of seismic changes with the passage of the Inflation Reduction Act, which are currently active (for now). The 5 biggest changes are:
- Major vehicle requirement changes:
- have a battery capacity of at least 7 kilowatt hours.
- be made by a qualified manufacturer
- have final vehicle assembly in North America
- meet certain battery and minerals sourcing criteria
- have a maximum vehicle MSRP of $80,000 for vans, sport utility vehicles and pickup trucks and $55,000 for other vehicles.
- No more automaker # of vehicles sold phaseouts: theoretically GM, Tesla, and Toyota are once again eligible for the full electric vehicle tax credit amount (up to $7,500), provided they meet other criteria.
- Taxpayer modified adjusted gross income (MAGI) eligibility caps were added.
- Used vehicles are now potentially eligible for a tax credit as well.
- Dealerships are now able to offer the value of a tax credit up front to consumers (optional).
The “final vehicle assembly in North America” and battery and minerals sourcing criteria are going to dramatically impact which electric vehicles are eligible for the full $7,500 clean vehicle tax credit as a number of major automakers manufacture their vehicles outside of North America. The IRS recently released a revised list of vehicles that are eligible for the Clean Vehicle Tax Credit in 2025. Right now, that list is pretty thin. One bright spot is automaker financing arms voluntarily passing along up to $7,500 in EV lease tax credit offers to consumers through a loophole.
So, before you run out to buy an electric vehicle, make sure that you’ve done your homework (the article I highlighted at the top of this one should help, but is really just a starting point, as everything is going to be a moving target). With the new Presidential administration showing animosity towards electric vehicles, we could see these tax credits disappear at any point.
And, finally, for anyone claiming an electric vehicle tax credit for last year or this year, the best tax programs and cheapest ways to e-file will have versions of their product that will walk you through both federal and state electric vehicle tax credit eligibility.
The 10 Cheapest Electric Vehicles of 2025 Ranking (in the U.S. Market):
Here are the top 10 cheapest electric vehicles of 2025 sold in the U.S. market, ranked from #10 to #1.
10. Nissan Ariya
- Base Electric Model: Nissan Ariya Engage
- Base MSRP (before tax credits or other incentives): $41,160
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $41,160
- Combined MPGe: 101
- City MPGe: 109
- Highway MPGe: 94
- Annual Energy Cost: $750
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 143 grams/mile
- Battery Range: 216 miles
- Overview: a $3,395 price decrease from last year pushes the Nissan Ariya onto the list of the cheapest EVs in 2025. The Nissan Leaf was eligible for a partial ($3,750) tax credit last year, but the Nissan Ariya was not. As of January, neither vehicle is eligible for the tax credit in 2025. It is possible, but I don’t expect it.
9. Kia Niro EV
- Base Electric Model: Kia Niro EV Wind
- Base MSRP (before tax credits or other incentives): $40,995
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Combined MPGe: 113
- City MPGe: 126
- Highway MPGe: 101
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 129 grams/mile
- Battery Range: 253 miles
- Overview: the 2025 Kia Niro EV comes with just a $70 increase in MSRP versus the prior year, helping it stay on the cheapest EVs list. Neither this year or last year’s model were eligible for the Clean Vehicle tax credit on new purchases. Kia has moved some electric vehicle production to the U.S. (EV6 and EV9), but not the Kia Niro (yet).
8. Subaru Solterra
- Base Electric Model: Subaru Solterra Premium
- Base MSRP (before tax credits or other incentives): $39,915
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $39,915
- Combined MPGe: 104
- City MPGe: 114
- Highway MPGe: 94
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 137 grams/mile
- Battery Range: 227 miles
- Overview: a massive price decrease of $6,305 versus the prior year, pushes the Subaru Solterra onto the list of the cheapest EVs, at the #8 spot. The Solterra, which looks eerily similar to the Toyota bZ4X, is not eligible for a tax credit. Its range is a bit underwhelming at 227 miles.
7. Hyundai Ioniq 6
- Base Electric Model: Hyundai Ioniq 6 SE Standard Range
- Base MSRP (before tax credits or other incentives): $38,945
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $38,945
- Combined MPGe: 135
- City MPGe: 151
- Highway MPGe: 120
- Annual Energy Cost: $550
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 107 grams/mile
- Battery Range: 240 miles
- Overview: the 2025 Hyundai Ioniq 6 is priced below $40K, making it the 7th cheapest electric vehicle, and gets combined MPGe of 135. Aside from not being eligible for the Clean Vehicle Tax Credit, the only other notable downside is relatively short range versus some of its similar competitors (240 miles).
6. Ford Mustang Mach-E
- Base Electric Model: Ford Mustang Mach-E Select RWD
- Base MSRP (before tax credits or other incentives): $38,860
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $38,860
- Combined MPGe: 102
- City MPGe: 106
- Highway MPGe: 98
- Annual Energy Cost: $750
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 141 grams/mile
- Battery Range: 250 miles
- Overview: the Mustang Mach-E has declined a whopping $7,080 in price (from $45,940) since the start of last year, bringing it onto the list of the cheapest EVs at #6. At this price, the size and styling of the Mach-E makes it compelling versus the competition. Now, if it can only get eligible for a federal tax credit.
5. Toyota bZ4X
- Base Electric Model: Toyota bZ4X XLE
- Base MSRP (before tax credits or other incentives): $38,465
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Combined MPGe: 119
- City MPGe: 131
- Highway MPGe: 107
- Annual Energy Cost: $650
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 122 grams/mile
- Battery Range: 252 miles
- Overview: the Toyota bZ4X jumps up to the #5 spot on the cheapest EVs of 2025 list with a huge $5,955 price decrease (down from $44,420) last year. The bZ4X has strong specs with an MPGe of 119 and range of 252 miles. It looks pretty good too.
4. Fiat 500e
- Base Electric Model: Fiat 500e
- Base MSRP (before tax credits or other incentives): $37,595
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $37,595
- Combined MPGe: 116
- City MPGe: 127
- Highway MPGe: 104
- Annual Energy Cost: $650
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 125 grams/mile
- Battery Range: 149 miles
- Overview: a new entrant to the cheapest electric vehicle list in 2025, the Fiat 500e places at the #4 spot. However, with a vehicle of this size and only 149 miles range, this thing is best confined to golf courses. The 500e was expected to have a $32,500 base MSRP, but came in much higher than that.
3. Chevy Equinox EV
- Base Electric Model: Chevy Equinox EV LT
- Base MSRP (before tax credits or other incentives): $34,995
- Clean Vehicle Tax Credit Eligibility: eligible for a full $7,500 tax credit if purchased in 2025 (as of January, 2025).
- Net Effective Price (MSRP minus full federal tax credit, if eligible*): $27,495
- Combined MPGe: 109
- City MPGe: 117
- Highway MPGe: 100
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 134 grams/mile
- Battery Range: 319 miles
- Overview: GM is going to sell a lot of Equinox EVs in 2025 (if they planned properly). The #3 cheapest EV comes with 319 miles range, and is the only vehicle eligible for an EV tax credit ranked in the top 10 cheapest EVs. With the $7,500 credit, its net price on the base model declines to $27,495 – making it the TRUE cheapest EV in 2025.
2. Hyundai Kona Electric
- Base Electric Model: Hyundai Kona Electric SE
- Base MSRP (before tax credits or other incentives): $34,325
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Combined MPGe: 118
- City MPGe: 131
- Highway MPGe: 105
- Annual Energy Cost: $650
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 123 grams/mile
- Battery Range: 200 miles
- Overview: the 2025 Hyundai Kona EV comes with a $315 increase in MSRP versus the prior year. Neither this year or last year’s model were eligible for the Clean Vehicle tax credit on new purchases, due to the vehicle not being manufactured outside of the United States. It may be relatively cheap for an EV, but at only 200 miles of range, I don’t expect it to be a top seller.
1. Nissan Leaf
- Base Electric Model: Nissan LEAF S (40 kWh)
- Base MSRP (before tax credits or other incentives): $29,280
- Clean Vehicle Tax Credit Eligibility: not eligible for the Clean Vehicle tax credit for 2025 on new purchases (as of January, 2025), but you may be able to find lease bonus cash offers.
- Combined MPGe: 111
- City MPGe: 123
- Highway MPGe: 99
- Annual Energy Cost: $700
- CO2 Tailpipe Emissions: 0 grams/mile
- Upstream CO2 Emissions (national average): 131 grams/mile
- Battery Range: 149 miles
- Overview: the 2025 Nissan Leaf comes with a $25 increase in MSRP versus the prior year and is virtually the same vehicle. The Nissan Leaf was eligible for a partial ($3,750) Clean Vehicle tax credit last year, but is currently not eligible for 2025. With a range of just 149 miles, the base Leaf is a laggard versus its competition, and the financial incentives are not there to take it too seriously at the moment as anything more than a commuter car.