Buyer's Guide: The Best EVs You Can Buy Under $40,000
Dan Kowalski
May 2, 2025 · 8 min read
The era of the $60,000 average EV is ending. Thanks to aggressive price cuts, localized manufacturing, and falling battery costs, there are now several excellent electric vehicles available for under $40,000.
Our top pick remains the **Tesla Model 3 Rear-Wheel Drive**. While its sticker price often hovers just above $40k, inventory discounts and tax credits frequently push it well below that threshold. The Highland refresh brought a much-needed interior quality upgrade and better ride comfort.
The **Volvo EX30** is the dark horse of this segment. Starting at $34,950, it offers striking Scandinavian design, a remarkably quick 0-60 time of 5.1 seconds in base trim, and perfectly adequate range for city dwellers. Its minimalist interior isn't for everyone, but its value proposition is undeniable.
For those who need maximum space, the **Chevrolet Equinox EV** offers a massive interior and over 300 miles of range for around $35,000 (after incentives). While the interior materials reflect the price point, the sheer utility makes it a compelling family hauler.
Finally, don't ignore the used market. Two-year-old Hyundai IONIQ 5s and Ford Mustang Mach-Es are currently trading in the high $20k range, representing some of the best value in the entire automotive market.