The Cheapest Electric Vehicles in 2023

This article will rank the cheapest new electric vehicles in 2023 (as of Feb., 2023). With all of the changes to the electric vehicle tax credits from the Inflation Reduction Act (a must read for those interested in purchasing an electric vehicle in 2023 and beyond), anyone in the market for a new vehicle should have an awareness of what the cheapest electric vehicles in 2023 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 war-time profiteering and politics and the $5+ per gallon gas that comes from that is not a fun place to be.

However, the incentive to go electric 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 finally seeing automakers begin to deliver on meeting consumer demand for affordable, efficient, high-range new electric cars, trucks, crossovers, and SUVs.

As a result of these 2 trends converging, full electric vehicle sales in last year nearly doubled year-over-year in the U.S. market, from 3.2% to 5.8% of all vehicles sold. With exciting new electric vehicle models, including plenty of pickup trucks, crossovers, and SUVs scheduled to hit the market soon, the expanded EV credits from the Inflation Reduction Act, and many Americans still having PTSD on gas prices, the shift towards electric vehicles will only continue in 2023. Don’t believe me? Exxon Mobile’s CEO predicted that by 2040 every new passenger car sold in the world will be electric. While oil execs don’t have the best track record on truth, that’s a fairly bold prediction that would have a huge negative impact on his company.

I’ve always been a fuel economy nerd and have kept a close eye on the most fuel-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, such as with 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 electricity. 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, however, was the astronomical prices of many of those vehicles (and, yes, I’m looking at you, Tesla). 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. This is quickly changing though, 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 combined has led me to create this ranking of the cheapest electric cars, trucks, and SUVs here.

Don’t Sleep On the Enhanced Federal Energy Tax Credits & New Rebates from the Inflation Reduction Act

Don’t sleep on 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 Electric Vehicles Launching in 2023

The Toyota bZ4X is a new entrant to the 2023 list of the cheapest new electric vehicles, but as of the date of publish, it’s the only one. However, that should change by the end of the year. GM is looking to aggressively improve their brand position in the EV space and are expected to launch an electric Chevy Equinox, electric Chevy Blazer, and electric Chevy Silverado by the end of this year (technically 2024 model year). What’s noteworthy is not that these vehicles are launching, but the price that GM has hinted at with their launch: $30,000 for the Equinox, $40,000 for the Silverado, and $45,000 for the Blazer. If they are able to pull off those prices, each of those vehicles could become the top-sellers in their respective class from day one and could force an industry-wide price decreases. Given that they have the 2 cheapest electric vehicles on this list already, I have no reason to doubt them.

Electric Vehicle Price Ranking, Efficiency, Range, & Other Metrics

For the specs listed 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 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 average of about 410 grams/mile.
• Annual energy costs listed are based on 45% highway, 55% city driving, 15,000 annual miles and $0.14 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.

An Important Note on the New “Clean Vehicle Tax Credits” in 2023 (Post Inflation Reduction Act Enactment)

Note that the $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 was passed in 2022 and is now active in 2023). The 5 biggest changes are:

1. Major vehicle requirement changes:
   • have a battery capacity of at least 7 kilowatt hours.
   • be made by a qualified manufacturer (as of the date of publish, Audi, BMW, GM, Ford, Nissan, Rivian, Stellantis (Chrysler, Jeep), Tesla, Volvo, and VW have done this, while the other manufacturers have applied).
   • have final vehicle assembly in North America (as of the date of publish, only the Chevy Bolt, Chevy Bolt EUV, Nissan Leaf, and VW ID.4 on this list are made 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.
2. No more automaker 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.
3. Taxpayer modified adjusted gross income (MAGI) eligibility caps were added.
4. Used Vehicles are now potentially eligible for a tax credit as well.
5. Starting in 2024, dealerships will be able to offer the value of a tax credit up front to consumers.

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 released new guidance on this in April of 2023, resulting in a revised list of vehicles that are still eligible for the Clean Vehicle Tax Credit after 4/18/23.

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).

And, finally, for anyone claiming an electric vehicle tax credit for last year or this year, the best tax programs and even 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. Here’s my favorites with best-available partner discounts applied automatically at these links:

1. H&R Block
2. TurboTax
3. TaxSlayer
4. TaxAct
5. Cash App Taxes (formerly “Credit Karma Tax”, now owned by Square/Cash App)

The 10 Cheapest Electric Vehicles of 2023 Sold in the US Ranking:

Here are the top 10 cheapest electric vehicles of 2023 sold in the United States, from #10 to #1.

10. Toyota bZ4X

• Base Electric Model: Toyota bZ4X
• Base MSRP (before tax credits or other incentives): $43,335
• Clean Vehicle Tax Credit Eligibility: not eligible for 2023
• Combined MPGe: 119
• City MPGe: 131
• Highway MPGe: 107
• Annual Energy Cost: $600
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 120 grams/mile
• Battery Range: 252 miles
• Overview: a new entrant to the cheapest electric vehicle list in 2023 – the sporty Toyota bZ4X brings strong EV specs with an MPGe of 119 and range of 252 miles. One minor detail… the bZ4X’s wheels have had a “staying on the vehicle” issue. Toyota says it has a fix – and if that’s true (and other major issues don’t arise), this appears to be a good value EV.

9. Hyundai Ioniq 5

• Base Electric Model: Hyundai Ioniq 5 SE SR RWD
• Base MSRP (before tax credits or other incentives): $42,785
• Clean Vehicle Tax Credit Eligibility: not eligible for 2023
• Combined MPGe: 114
• City MPGe: 132
• Highway MPGe: 98
• Annual Energy Cost: $6
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 120 grams/mile
• Battery Range: 303
• Overview: 303 miles of range is impressive for a vehicle of this size. The Ioniq 5 has won “world car of the year”, “world car design of the year”, and “world electric vehicle of the year” awards.

8. Kia Niro EV

• Base Electric Model: Kia Niro EV
• Base MSRP (before tax credits or other incentives): $40,875
• Clean Vehicle Tax Credit Eligibility: not eligible for 2023
• Combined MPGe: 113
• City MPGe: 126
• Highway MPGe: 101
• Annual Energy Cost: $600
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 120 grams/mile
• Battery Range: 253 miles
• Overview: the 2023 Kia Niro EV comes with an all new redesign. Range only increased from 239 miles to 253, with a very slight bump in combined MPGe from 112 last year to 113 in 2023. The looks? Well, I think they are better overall. The front headlights are definitely an eye grabber, for better or for worse. The 2023 Kia Niro EV still isn’t as efficient as its sister model, the Hyundai Kona electric, and it still has a heftier price tag.

7. Volkswagen ID.4

• Base Electric Model: Volkswagen ID.4 Standard
• Base MSRP (before tax credits or other incentives): $40,290
• Clean Vehicle Tax Credit Eligibility: eligible for a $7,500 tax credit if placed in service after 1/1/23 but before 4/18/23. Not eligible for a credit if purchased on or after 4/18/23.
• Net Effective Price (MSRP minus full federal tax credit, if eligible*): $32,790
• Combined MPGe: 107
• City MPGe: 115
• Highway MPGe: 99
• Annual Energy Cost: $650
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 130 grams/mile
• Battery Range: 209
• Overview: the 2023 VW ID.4 jumps from #9 on the cheapest electric vehicle list (last year) to #7 this year, with the entrance of a new “Standard” model vs the “Pro” model that cost $41,995 last year. The range drops from 275 to 209 with the Standard model, which is a fairly big drop. Unfortunately, the “Pro” model now costs $45,290.

6. Mazda MX-30 Electric

• Base Electric Model: Mazda MX-30
• Base MSRP (before tax credits or other incentives): $35,385
• Clean Vehicle Tax Credit Eligibility: not eligible for 2023
• Combined MPGe: 92
• City MPGe: 98
• Highway MPGe: 85
• Annual Energy Cost: $6
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 150 grams/mile
• Battery Range: 100
• Overview: Mazda’s first all-electric vehicle is affordable for the size and utility, but I wonder who is in the market for an all-electric vehicle that has just 100 miles of range. Come on, Mazda!

5. MINI Cooper SE Electric

• Base Electric Model: MINI Cooper SE Electric Hardtop
• Base MSRP (before tax credits or other incentives): $30,750
• Clean Vehicle Tax Credit Eligibility: not eligible for 2023
• Combined MPGe: 110
• City MPGe: 119
• Highway MPGe: 100
• Annual Energy Cost: $6
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 130 grams/mile
• Battery Range: 114
• Overview: the 2023 MINI Cooper SE Electric drops from being the 2nd cheapest electric vehicle down to the #5 spot. Last year’s model was priced at $30,750, and the 2023 (which is nearly identical) jumps to $35,220. For a vehicle with a range of 114 miles, that price is difficult to justify.

4. Hyundai Kona Electric

• Base Electric Model: Hyundai Kona Electric
• Base MSRP (before tax credits or other incentives): $34,885
• Clean Vehicle Tax Credit Eligibility: not eligible for 2023
• Combined MPGe: 120
• City MPGe: 134
• Highway MPGe: 106
• Annual Energy Cost: $600
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 120 grams/mile
• Battery Range: 258 miles
• Overview: the 2023 Hyundai Kona Electric comes with a new redesign (though it looks pretty similar to me). Efficiency and range are similar, but still good for the size. And the price seems reasonable. Thus far (at the start of 2023) the Kona electric is not eligible for the revised federal EV credit – hopefully that changes in time.

3. Nissan Leaf

• Base Electric Model: Nissan LEAF S (40 kWh)
• Base MSRP (before tax credits or other incentives): $29,135
• Clean Vehicle Tax Credit Eligibility: eligible for a $7,500 tax credit if placed in service after 1/1/23 but before 4/18/23. Not eligible for a credit if purchased on or after 4/18/23.
• Net Effective Price (MSRP minus full federal tax credit, if eligible*): $21,635
• Combined MPGe: 111
• City MPGe: 123
• Highway MPGe: 99
• Annual Energy Cost: $650
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 130 grams/mile
• Battery Range: 149
• Overview: the 2023 Nissan Leaf is slightly remodeled versus last year’s model and comes with a small $240 price increase. Nissan does need to get that range up in order to stay competitive with the Chevrolet Bolt and Bolt EUV.

2. Chevrolet Bolt EUV

• Base Electric Model: Chevrolet Bolt EUV
• MSRP (before tax credits or other incentives): $28,795
• Clean Vehicle Tax Credit Eligibility: eligible for a $7,500 tax credit if purchased in 2023
• Net Effective Price (MSRP minus full federal tax credit, if eligible*): $21,295
• Combined MPGe: 115
• City MPGe: 125
• Highway MPGe: 104
• Annual Energy Cost: $600
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 120 grams/mile
• Battery Range: 247 miles
• Overview: GM dropped the price of last year’s Bolt EUV from $33,995 (before that, it previously topped $40K) down to an industry-impacting $28,795 for 2023. The 2 Bolts have catapulted to the top of the electric vehicle top sellers list as a result, despite no longer being eligible for an EV tax credit at the end of last year. Both Bolts will benefit from the removal of the automaker 200,000 EV vehicles sold cap as a result of Inflation Reduction Act modifications to the EV credits.

1. Chevrolet Bolt EV

• Base Electric Model: Chevrolet Bolt EV
• Base MSRP (before tax credits or other incentives): $27,495
• Clean Vehicle Tax Credit Eligibility: eligible for a $7,500 tax credit if purchased in 2023
• Net Effective Price (MSRP minus full federal tax credit, if eligible*): $19,995
• Combined MPGe: 120
• City MPGe: 134
• Highway MPGe: 106
• Annual Energy Cost: $600
• CO2 Tailpipe Emissions: 0 grams/mile
• Upstream CO2 Emissions (national average): 120 grams/mile
• Battery Range: 258
• Overview: Chevy also announced that they are dropping the 2023 Bolt EV price down to $26,595 (it was $31,995, and around $40,000 MSRP before that) which would make it the cheapest new electric vehicle in the U.S. market (barring any unexpected new entrants). At this price and with 259 miles of range, so long as it doesn’t catch on fire, it’s a phenomenal deal.