The prices for luxury electric vehicles are falling fast before the year ends and inventory is high. Americans will see more deals as tech changes quickly and buyers wait for improved batteries or longer ranges from new models. Lauren Fix, automotive expert at Car Coach Reports, said high MSRPs and lower demand are making price drops likely for several big-name luxury EVs.
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Dealers may cut prices even more during the last few months of the year and around possible changes to the federal EV tax credit. Here are top EVs that will have their prices dropped before the end of 2025.
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Lucid Air
The Lucid Air is seeing larger price drops due to soft demand and too many cars in stock. Prices for a new Lucid Air start at $69,900, but discounts are reaching up to $21,500 off for the base Pure model. Higher trims like the Grand Touring can get $31,500 in discounts, according to ArenaEV.
Fix points out that the Lucid Air faces tough competition from both Tesla and new luxury EVs. According to an EVXL report, advanced technology moves fast, which means earlier models struggle to hold their value as features and ranges improve. Dealers use big incentives to beat rivals and move their inventory quickly.
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Tesla Model S
The Tesla Model S is one of the best-known luxury electric sedans, but it is losing value quickly as it ages. Per Edmunds, a 2025 Model S can lose more than $66,000 in value over five years, about 60% of its original price. Fix said regular price changes from Tesla create uncertainty for resale values.
The Model S has strong performance and range, but with more choices on the market, dealers have to offer bigger deals to stay competitive. Car dealers are discounting both new and used Model S sedans as newer options arrive from other brands and Tesla itself. Waiting until the end of the year could help buyers find larger discounts.
Mercedes-Benz EQS
The Mercedes-Benz EQS is now being offered with discounts, as more used models hit the market and fewer buyers look for pure electric luxury sedans. According to Kelley Blue Book, the Fair Purchase Price for the 2025 EQS SUV is under the $106,300 sticker price and cost-to-own estimates show significant five-year depreciation. Lease returns and cooling interest in the all-electric EQS add to the pressure.
Fix said many of the first EQS sales were leases, so the market is seeing a wave of used vehicles. More supply makes it easy for buyers to ask for better prices and price cuts show dealers need to move outgoing models. Buyers interested in this sedan should look for clearance deals later in the year.
BMW i7
According to Fix, rapid EV tech advancement and high sticker prices are reducing the resale demand of the BMW i7. This luxury EV was once celebrated for its advanced features, but quick changes in EV technology have made it less attractive than before. Caredge estimates nearly $70,000 lost in value over five years, showing how fast EV prices can fall.
Dealers are offering deeper discounts as new models with longer range and updated tech compete for attention. Buyers can expect even bigger deals toward the end of the year, as luxury EV market competition grows. The high initial price and rapid tech change mean both new and used BMW i7s are being discounted more than traditional gas-powered rivals.
Audi e-tron GT
The Audi e-tron GT is a fast and stylish option, but prices are dropping as newer tech and more choices land in showrooms. Car and Driver shows the 2025 e-tron GT starts at $126,795, but dealerships are working to clear stock with incentives as demand shifts. Slow turnover means both new and used models are being marked down for buyers.
Fix said Audi is adding better features and performance each year, which lowers the value of previous models. Price reductions are more likely as dealers balance stock and shoppers hold out for new upgrades or deals. Heavy discounts could be found on outgoing 2025 models.
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This article originally appeared on GOBankingRates.com: 5 Luxury EVs That Will Have Massive Price Drops Before 2025 Ends
