This paper explores the impact of the burgeoning electric vehicle (EV) presence on distribution grid operations, highlighting the challenges they present to conventional pricing strategies due to their dual role as power consumers and suppliers, coupled with their energy storage capabilities. We propose an advanced real-time pricing model for the electricity market, employing a novel distributed bilevel optimization framework. This framework distinguishes between the distribution system operator (DSO) at the upper level and the EVs at the lower level, each aiming to optimize profit margins. The optimization includes power flow constraints at the upper level to ensure efficient operation within safe system limits, while model predictive control (MPC) is used to optimize lower-level EV responses. Additionally, we provide a rigorous convergence analysis of the proposed bilevel optimization method. Detailed convergence studies and simulation results demonstrate the effectiveness and superiority of the proposed algorithm.