Price increases for Tesla, GM and Ford EV are higher than for gasoline cars
US customers had to pay 22% more last month to buy electric cars amid rising demand and supply issues for EV makers, The Wall Street Journal reported on Sunday.
What happened: Average prices for electric vehicles rose 22% year-on-year in May, to around $54,000. By comparison, gasoline-powered vehicle prices rose 14% to around $44,400, according to an automotive research consultancy. J.D. Power.
Tesla Inc. TSLA, Ford Motors Co. F, General Motors Co. GM, Lucide Group Inc. LCID and Rivian Automobile Inc. SHORE are automakers that have recently hiked prices for some electric vehicles, in part to offset soaring costs for lithium, nickel, cobalt and other battery-making materials.
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Price increases continue: GM raised the price of GMC Hummer electric pickup models by $6,250 last week, citing increased commodity and logistics costs. The trucks, which have a waiting period of about two years, now cost between $85,000 and $105,000.
However, GM has also recently lowered the price of its Chevrolet Bolt from $6,000 to around $27,000.
Electric vehicle market leader Tesla raised prices several times in May and made another round of increases a week ago. The Elon MuskThe company-run company raised the price of its cars in the United States by $6,000 on various models.
Earlier this year, Musk warned that the company was facing significant raw material and logistics costs.
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Ford Chief Financial Officer John Lawler said last week that rising raw material costs had erased the profit the automaker originally expected to make on its electric Mustang Mach-E. The company raised prices to offset rising input costs, but Lawler said they weren’t enough to maintain margins.